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How  to  Buy  and  Sell 
Real  Estate  at  a  Profit 


A  Handbook 

for   Everyone   Interested   in   the 
Subject  of  Real  Estate 


By 

W.    A.    CARNEY 

Author  of  "  New  Secretary's  Manual " 


Published  by  the  Author 

at    Los   Angeles,   California 

J905 


Copyright,  1905,  by  W.  A.  Carney 


Printed  and  bound  by  Out  West  Co.,  Los  Angeles 


PREFACE 


In  this  book  the  author  has  endeavored  to  collect, 
classify  and  arrange  in  an  orderly  manner  information  and 
practical  forms  relating  to  the  acquisition,  ownership  and 
disposition  of  real  estate.  So  far  as  the  author  is  aware,  no 
book  covering  precisely  the  same  ground  has  been  published, 
and  he  believes  that  the  information  contained  within  the 
compass  of  these  covers  will  serve  a  definite  purpose  and  be 
of  determinate  value  to  the  public  at  large. 

THE  AUTHOR. 
Los  Angeles,  Cal.,  April,  1905. 


CONTENTS 


CHAPTER  I 

PAGE 

Of  Real  Estate  in  General 5 

CHAPTER  II 
Thrift ;   or  How  to  Accumulate  Capital          .         .  11 

CHAPTER  III 
How  and  Where  to  Buy 15 

CHAPTER  IV 
Options  and  Purchase  Agreements          ...  31 

CHAPTER  V 
Of  Deeds 48 

CHAPTER  VI 

How  to  Make  a  Loan,  Including-  Execution  of  Mort- 
gages and  Trust  Deeds  ....  75 

CHAPTER  VII 
Transfer  of  Title  in  Escrow  ;    Taxes  and  Insurance  96 

CHAPTER  VIII 
Homes  and  Homesteads 115 

CHAPTER  IX 
Miscellaneous  Matters  Affecting  Real  Estate     .         .         133 

CHAPTER  X 
Subdivisions       ........  181 

CHAPTER  XI 
How  and  When  to  Sell 190 

CHAPTER  XII 
Booms  and  Panics  202 


HOW  TO  BUY  AND  SELL 
REAL  ESTATE  AT  A  PROFIT 

CHAPTER  I. 

OF  REAL  ESTATE   IN  GENERAL. 

Property  Defined — Lands,  Tenements  and  Hereditaments — Fixtures,  Appurten- 
ances and  Estates— Ownership — Title— Sources  of  Title— Acquisition  of  Land— Lim- 
itations of  the  Subject. 

Section  i.  Property  is  anything  of  which  there  may  be 
ownership.  Land,  buildings,  clothing,  domestic  animals,  copy- 
rights, and  the  good  will  of  a  business,  are  examples  of  prop- 
erty. There  are  two  kinds  of  property — real  and  personal. 

Sec.  2.  Real  Property  is  divided  into  two  classes — cor- 
poreal and  incorporeal. 

Sec.  3.  Corporeal  Real  Property  includes  all  things  which 
are  visible  and  capable  of  possession,  such  as  lands,  mines, 
rights  of  way,  water  courses,  etc. 

Sec.  4.  Incorporeal  Real  Property  consists  of  rights  and 
profits  issuing  out  of  and  annexed  to  corporeal  real  property, 
such  as  rents,  etc. 

Sec.  5.  Land  comprises  the  solid  material  of  the  earth,  in- 
cluding that  which  is  visible,  as  well  as  that  which  lies  under 
lakes  and  rivers,  and  it  extends  from  the  center  of  the  earth 
to  an  indefinite  distance  upward.  All  things  growing  upon 
or  built  on  land,  as  well  as  all  metals  and  mines  beneath  the 
surface,  are  considered  a  part  of  the  land.  Buildings  upon 
land  are  so  generally  understood  to  be  a  part  of  the  land  that 
they  will  pass  with  the  land  in  a  deed  of  conveyance  without 
being  named. 

Sec.  6.  Lands,  Tenements  and  Hereditaments.  The 
phrase,  'lands,  tenements  and  hereditaments"  includes: 

(i.)    The  land  itself. 

(2.)  Anything,  either  lands  or  buildings,  which  may  be 
held  by  a  tenant. 

(3.)  Everything  which  passes  from  the  ancestor  to  the 
heir. 


6  HOW    TO    BUY    AND 

Sec.  7.  A  Fixture  is  an  article  which  may  be  either  real 
or  personal  according  to  circumstances.  A  thing  is  said  to  be 
affixed  to  land  when  it  is  attached  to  it  by  means  of  roots,  as 
in  the  case  of  trees,  vines  and  shrubs ;  or  imbedded  in  it,  as  in 
the  case  of  walls ;  or  permanently  resting  upon  it,  as  in  the 
case  of  buildings,  or  permanently  attached  to  that  which  is  so 
permanent,  as  by  means  of  cement,  plaster,  nails,  bolts  or 
screws. 

Sec.  8.  An  Appurtenance  is  that  which  is  incidental  to  or 
by  right  used  with  the  land  for  its  benefit,  as  in  the  case  of  a 
fence,  gate  or  windmill. 

Sec.  9.  An  Estate  is  the  degree,  nature,  quantity  or  in- 
terest which  one  has  in  real  property.  In  respect  to  the  dura- 
tion of  their  enjoyment,  there  are  four  estates  in  real  property, 
namely: 

(i.)  Estates  of  Inheritance,  or  perpetual  estates.  Every 
such  estate  is  a  fee — that  is,  an  estate  which  may  continue  for- 
ever, and  is  trie  largest  possible  estate, — and  every  such  estate 
which  is  not  defeasible  or  on  condition,  is  a  fee  simple  or  ab- 
solute fee. 

(2.)  Estates  for  Life.  A  person,  that  is  to  say,  Smith, 
owning  a  parcel  of  land,  may  grant  it  to  Jones,  to  be  held  by 
Jones  as  long  as  Jones  lives.  In  such  case,  Jones'  interest  in 
the  land  would  be  termed  a  life  estate,  and  Jones  would  be  a 
tenant  for  life.  The  duty  of  the  life  tenant  is  to  so  care  for  the 
property  as  to  prevent  deterioration  or  waste  from  neglect  or 
decay.  He  may  make  reasonable  use  of  wood  on  the  premises 
for  fuel,  fences  or  repairs.  The  tenant  for  life  may  lease  the 
property  or  occupy  it  himself.  He  cannot  sell  or  mortgage  the 
property,  nor  dispose  of  it  at  his  death,  but  he  may  sell  or 
mortgage  his  life-ownership  or  interest. 

(3.)  Estates  for  Years,  or  Leasehold  Estates,  are  con- 
tracts for  the  possession  and  profits  of  real  estate  for  a  fix^d 
period  with  reservation  of  rents. 

(4.)  Estates  at  Will,  are  the  letting  of  land  by  one  person 
to  another,  to  be  held  at  the  will  of  the  "party  so  letting  it.  Es- 
tates at  will  have  been  found  to  be  so  uncertain  that  they 
have  become  well  nigh  obsolete  as  the  tendency  of  the  courts 
is  to  construe  them  to  be  tenancies  from  year  to  year. 


REAL  ESTATE  AT  A  PROFIT  7 

Sec.  10.  A  Reversion  is  the  residue  of  an  estate  left,  by 
operation  of  law,  in  the  grantor  or  his  successors.  The  fee 
simple  of  all  lands  must  abide  in  some  one,  and  if  he  who  be- 
fore possessed  the  whole  estate,  carved  a  smaller  estate  out 
of  it  and  granted  it  away,  whatever  was  not  so  granted,  re- 
mained in  him. 

Sec.  ii.  A  Remainder  is  a  future  estate,  other  than  a  re- 
version, and  is  dependent  on  some  estate  which  preceded  it. 
Thus,  in  the  case  above,  where  Smith  granted  a  life  estate  to 
Jones,  the  interest  which  Smith  still  had  in  the  land  would  be 
an  estate  in  reversion,  as  the  land  would  revert  to  Smith,  or 
his  successors,  upon  the  death  of  Jones.  Again,  if  Smith  were 
to  grant  a  life  estate  to  Jones,  the  land  to  become  the  property 
of  Brown  upon  the  death  of  Jones,  the  interest  which  Brown 
had  in  the  land  while  Jones  was  in  possession,  would  be  called 
an  estate  in  remainder.  A  remainder  is  limited  to  a  third  per- 
son ;  a  reversion  belongs  to  the  grantor. 

Sec.  12.  Ownership.  The  ownership  of  a  thing  is  de- 
fined to  be  the  right  of  one  or  more  persons  to  use  and  possess 
it  to  the  exclusion  of  others.  The  right  of  ownership  in  land 
was  recognized  as  far  back  as  the  days  of  the  patriarch  Abra- 
ham. Persons  are  natural  or  artificial.  A  natural  person  is  a 
living  human  being.  An  artificial  person,  or  a  corporation,  as 
it  is  called,  is  a  creature  of  the  law  and  has  certain  powers  and 
duties  of  a  natural  person.  The  owner  of  the  land  in  fee  is  en- 
titled to  the  surface  and  to  everything  permanently  situated 
above  or  below  it.  He  may  grant  the  minerals  and  remain  the 
owner  of  the  surface  of  the  land ;  or  he  may  grant  the  use  of 
the  surface  of  the  land  and  remain  the  owner  of  the  minerals 
by  specifically  excepting  the  minerals  in  the  grant.  All  prop- 
erty has  an  owner.  Public  property  is  owned  by  the  State ; 
private  property  by  individuals.  Any  person,  capable  of  mak- 
ing a  contract,  be  he  citizen  or  foreigner,  may  take,  hold  and 
dispose  of  both  real  and  personal  property.  Ownership  may  be 
absolute  or  qualified.  In  absolute  ownership,  a  single  person 
has  absolute  dominion  over  the  property,  and  may  use  or  dis- 
pose of  it  at  his  pleasure,  subject  only  to  general  laws.  In 
qualified  ownership,  two  or  more  persons  participate  as  owners, 
or,  the  time  of  the  enjoyment  of  the  property  is  deferred  or 


8  HOW    TO    BUY    AND 

limited,  or,  the  use  to  which  the  property  may  be  put  is  re- 
stricted. 

Sec.  13.  Real  Property  in  each  State  is  governed  by  the 
law  of  that  State,  except  as  to  property  the  title  to  which  is 
in  the  government  of  the  United  States. 

Sec.  14.  Community  Property  is  that  acquired  by  hus- 
band and  wife,  or  either,  during  marriage,  when  not  acquired 
as  the  separate  property  of  either. 

Sec.  15.  Curtesy  is  the  life  estate  which  a  husband  has  in 
the  property  of  his  wife  after  her  death. 

Sec.  16.  Dower  is  the  life  estate  which  the  wife  has  in  her 
husband's  property  which  was  acquired  during  their  marriage, 
and  usually  means  one-third  of  the  estate. 

Sec.  17.  Title  is  defined  to  be  the  means  whereby  the 
owner  has  just  possession  of  his  property. 

(i.)  A  Perfect  Title  is  one  that  is  good  and  valid  beyond 
all  reasonable  doubt.  It  should  be  free  from  litigation,  pal- 
pable defects  and  grave  doubts,  should  consist  of  both  the  le- 
gal and  the  equitable  title,  and  should  be  fairly  deducible  from 
the  public  records. 

(2.)  Titles  are  good,  marketable,  doubtful  or  bad.  A 
good  title  is  one  which  entitled  the  owner  of  the  property  or 
estate  to  the  lawful  possession  thereof. 

(3.)  A  Marketable  Title  is  one  which  a  court  of  equity 
would  consider  to  be  so  clear  that  it  would  enforce  the  accept- 
ance of  such  title  by  a  purchaser. 

(4.)  A  Doubtful  Title  is  one  which  a  court  of  equity 
would  not  enforce  and  yet  one  which  would  not  be  defective 
enough  for  a  court  to  declare  bad.  A  bad  title  would  convey 
no  property  whatever. 

Sec.  18.  Under  the  English  law  the  original  source  of 
title  is  in  the  king,  and  under  our  laws  it  is  in  the  government 
of  the  United  States.  |In  evidence  of  such  original  title,  the 
government  issues  a  written  instrument  called  a  patent.  In 
some  instances,  notably  in  the  case  of  the  State  of  California, 
some  of  the  titles  originated  in  a  prior  form  of  government 
and  were  confirmed  by  the  United  States.  The  territory  now 
comprising  the  State  of  California  was  acquired  from  the  Mex- 
ican Republic,  February  2,  1848,  by  the  treaty  of  Guadalupe 
Hidalgo.  All  rights  or  titles  to  land  acquired  by  private  par- 


ESTATE  AT  A  PROFIT  9 

ties  or  municipal  corporations,  under  the  Spanish  or  Mexican 
Governments,  prior  to  the  above  mentioned  treaty,  were  by 
such  treaty  recognized  and  granted,  and  subsequently  were 
officially  ascertained  and  settled  by  a  Board  of  Land  Commis- 
sioners, from  whose  decision  appeal  could  be  taken  to  the  Fed- 
eral Court.  Letters  patent  of  the  United  States  were  issued 
upon  final  decision  in  favor  of  the  claimant.  These  patents 
have  been  held  not  to  create  a  new  title  but  to  confirm  and  es- 
tablish the  former  title.  All  lands  in  California,  the  title  to 
which  were  not  so  confirmed  by  the  Board  of  Land  Commis- 
sioners or  the  Federal  Court,  became  absolutely  the  property 
of  the  United  States. 

Sec.  19.  Acquisition  of  Land,  or  Acquiring  Title.  Lands 
are  acquired : 

(i.)  By  occupancy,  or  the  settling  upon  and  holding  of 
lands  for  the  terms  prescribed  by  the  laws'  of  the  several  States 
(from  ten  to  twenty  years).  Such  occupancy  confers  a  sufficient 
title  except  as  against  those  who  have  a  better  title  to  the  same 
premises.  Such  occupancy  must  be  an  "adverse  possession," 
as  it  is  called;  that  is,  the  party  in  possession  of  the  premises 
must  be  there  under  some  claim  of  right,  and  his  possession  of 
the  premises  must  be  actual,  open,  notorious  and  continuous 
during  the  whole  period  which  the  law  says  a  man  must  be  in 
possession  in  order  to  acquire  title  in  that  way.  A  person  who 
acquires  title  in  this  manner  is  generally  called  a  "squatter." 
Title  to  the  public  lands  cannot  be  acquired  by  a  "squatter,"  as 
the  statute  of  limitations  does  not  run  against  a  State  or 
against  the  United  States.  Adverse  possession  is  a  sort  of  nega- 
tive title  which  deprives  others  of  the  power  of  ousting  the  oc- 
cupant. 

(2.)  By  Accretion.  Where  land  forms  by  imperceptible 
degrees  upon  the  bank  of  a  stream,  either  by  accumulation  of 
material  or  receding  of  the  stream,  such  land  belongs  to  the 
owner  of  the  bank.  This  process  is  called  Alluvion.  Any 
property  affixed  by  one  person  to  the  land  of  another,  without 
an  agreement  permitting  its  removal,  belongs  to  the  owner  of 
the  land. 

(3.)  By  Transfer.  A  transfer  is  an  act  of  the  parties,  or  of 
the  law,  whereby  the  title  to  property  is  transferred  from  one 


10  HOW    TO    BUY    AND 

living  person  to  another.  Any  person  claiming  the  title  to  real 
property  may  transfer  it,  although  at  the  time  it  may  be  in  the 
adverse  possession  of  another.  The  party  making  the  transfer 
is  called  the  transferrer  and  the  party  receiving  the  transfer  is 
called  the  transferee.  A  transfer  in  writing  is  called  a  grant,  or 
conveyance,  or  bill  of  sale,  and  vests  in  the  transferee  the 
actual  title  to  the  thing  transferred,  with  all  its  incidents,  un- 
less a  different  intention  is  expressed.  The  transfer,  however, 
of  the  incident  to  a  thing  will  not  transfer  the  thing  itself :  thus, 
the  transfer  of  a  farm  will  also  transfer  a  well  of  water  in  it; 
but  the  transfer  of  the  well  of  water  would  not  transfer  the 
farm. 

(4.)  By  Succession,  or  the  coming  in  of  another  to  take 
the  property  of  one  who  dies  without  disposing  of  it  by  will. 
This  is  also  termed  descent,  or  hereditary  succession,  and  is 
the  title  the  heir  at  law  acquires  upon  the  death  of  his  ancestor. 
The  law  of  descent  has  reference  to  real  estate,  which,  if  not 
disposed  of  by  will,  descends  to  the  heirs ;  the  law  of  distribu- 
tion has  reference  to  personal  property,  which  if  not  be- 
queathed, is  to  be  distributed  among  the  next  of  kin  according 
to  the  statutes  of  distribution. 

(5.)  By  Will,  or  the  disposition  of  real  or  personal  prop- 
erty by  a  person,  called  the  testator,  by  his  last  will  and  testa- 
ment, to  take  effect  after  his  death. 

Sec.  20.  Personal  Property  includes  all  movable  property 
such  as  household  furniture,  monies,  stocks  and  bonds  of  cor- 
porations, live  stock,  evidences  of  debt,  etc. 

Sec.  21.  Limitations  of  the  Subject.  The  subject  of  real 
estate  is  extensive  and  intricate,  particularly  with  respect  to 
some  sub-divisions  of  it,  such  as  future  estates,  contingent  re- 
mainders, descent  and  distribution  and  the  like,  and  the  scope 
of  this  work  in  relation  to  real  estate  in  general  is  necessarily 
limited  to  such  definitions  and  data  as  will  enable  the  student 
or  reader  to  follow  intelligently  the  principal  topic  discussed, 
namely,  the  buying  and  selling  of  real  estate. 


REAL  ESTATE  AT  A  PROFIT  H 

CHAPTER  II. 

THRIFT,  OR  ACCUMULATION  OF  CAPITAL. 

Real  Estate  the  Highest  Form  of  Property — Real  Estate  a  Necessity — The  Ac- 
quisition of  Property  Implies  Moral  and  Intellectual  Qualities — Capital  is  Needed  to 
Acquire  Property — Capital  the  Result  of  Saving — How  to  Save — The  Saving  Habit  a 
Valuable  Asset  and  Easily  Acquired — No  Time  so  Opportune  as  the  Present — Rules 
of  Thrift  Laid  Down  by  Russell  Sage — The  Desirability  of  Owning  a  Home — Setting 
the  Money  to  Work — Going  Judiciously  Into  Debt — Savings  Banks  and  Building  and 
Loan  Associations — What  Sort  of  Investments  to  Avoid. 

Sec.  22.  Land,  because  of  its  immovability,  its  inde- 
structibility, and  its  relative  permanence  in  value,  as  well  as  on 
account  of  the  many  fine  sentiments' that  cluster  about  its 
ownership,  always  has  been  and  is  now  esteemed  above  all 
other  forms  of  property. 

Sec.  23.  "Private  property,"  says  St.  Thomas,  "is  neces- 
sary to  human  life  for  three  reasons :  first,  because  everyone 
is  more  solicitous  to  look  after  what  belongs  to  himself  alone 
than  what  is  common  to  all  or  many ;  secondly,  because  human 
affairs  are  handled  more  orderly  when  on  each  individual  is 
the  care  of  managing  something;  thirdly,  because  thereby  a 
peaceful  state  of  society  is  secured,  while  each  one  is  content 
with  his  own." 

Sec.  24.  Economists  tell  us  that  a  man's  capital  is  a  fund 
of  wealth  through  which  he  expects  to  receive  an  income.  The 
acquisition  of  wealth  implies  certain  moral  and  intellectual 
qualities.  The  power  of  saving  and  of  postponing  enjoyment 
is  necessary  to  the  formation  of  capital.  A  man  who  desires 
to  accumulate  capital  will  have  to  pursue  the  object  steadily 
and  under  difficulties  for  a  considerable  length  of  time,  and  he 
must  have  a  will  strong  enough  to  curb  his  appetites  and  an 
imagination  broad  enough  to  foresee  the  advantages  which  will 
accrue  from  the  possession  of  capital;  and  that  by  means  of 
capital  he  can  lessen  his  toil  and  cease  active  efforts  with  a 
sense  of  comparative  security  in  his  declining  years. 

Sec.  25.  To  acquire  property,  one  must  have  some  money. 
It  is  difficult  to  save  money  and  still  more  difficult  to  invest 
it  profitably.  A  man  must  succeed  in  something  to  be  happy. 
He  must  save  to  succeed.  He  can  save,  if  he  will  make  it  a 
fixed  rule  and  principle  of  his  life  to  invariably  spend  less  than 
he  earns.  If  a  man  will  do  this,  he  will  begin  to  accumulate 
capital. 


12  HOW    TO   BUY   AND 

Sec.  26.  In  regard  to  saving,  there  is  no  time  so  oppor- 
tune as  the  present  in  which  to  begin.  If  a  man  neglects  to  save 
in  his  earlier  years,  he  may  not  have  as  good  an  opportunity 
to  do  so  later  in  life.  "No  morning  sun  lasts  the  whole  day." 
The  habit  of  saving  must  be  formed.  Habit  is  the  regular 
performance  of  an  act  until  it  becomes  almost  involuntary  or 
a  second  nature,  requiring  but  little  effort  or  thought.  The 
man  or  woman  who  acquires  the  habit  of  saving  early  in  life 
has  a  most  valuable  asset.  Begin  to  save,  repeat  the  act  a 
few  times  regularly  and  the  habit  will  do  the  rest. 

Sec.  27.  When  one  first  begins  to  save,  he  should  place 
his  money  in  a  savings  bank,  where  it  will  draw  interest,  and 
thus  set  the  money  to  work.  All  reputable  savings  banks  pay 
about  the  same  rate  of  interest,  and  such  being  the  case,  there 
are  but  two  points  for  the  intending  depositor  to  consider: 
one  is  the  safety  of  the  deposit  and  the  other  is  the  selection 
of  a  bank  where  his  business  relations  will  be  pleasant  and 
agreeable. 

Sec.  28.  Savings  banks  are  required  to  publish  state- 
ments annually,  and  an  idea  of  the  safety  of  a  particular  bank 
can  be  obtained  from  its  statement.  Its  resources  should  be 
in  cash  or  in  items  readily  convertible  into  cash,  such  as  coupon 
bonds  and  corporate  stocks.  It  should  have  a  fair  portion  of 
its  assets  in  ready  cash.  Its  liabilities  should  show  a  good 
paid-up  cash  capital  and  proportionate  deposits.  There  should 
be  an  item  of  surplus  or  undivided  profits,  which  will  indicate 
that  the  bank  is  prosperous  and  is  making  money.  Its  direc- 
tors and  its  principal  shareholders  should  be  men  who  have  ac- 
cumulated fortunes  in  reputable,  legitimate,  non-speculative 
lines  of  business. 

Sec.  29.  Or,  the  budding  capitalist  may  invest  his  savings 
in  the  stock  of  a  building  and  loan  association  of  known  worth. 
He  should  examine  the  annual  statement,  and  inquire  into  the 
standing  of  the  directors  and  principal  stockholders  of  the  as- 
sociation, and  also  make  inquiry  among  outsiders  as  to  the 
reputation  of  the  association.  Such  an  association  loans  the 
monies  collected  from  its  stockholders  on  improved  real  es- 
tate, the  appraised  value  of  which  is  generally  made  by  men  of 
excellent  judgment,  and  the  rule  is  to  loan  not  over  fifty  per 


REAL  ESTATE  AT  A  PROFIT  13 

cent  of  the  appraised  valuation.  The  loans  made  by  the  asso- 
ciation are  distributed  over  a  large  number  of  properties,  so 
that  the  security  is  apparently  much  safer  than  if  the  individ- 
ual were  himself  to  loan  his  money  on  one  parcel  only,  and 
the  rate  of  interest  is  usually  higher  than  that  paid  by  a  sav- 
ings bank,  being  from  6  per  cent  to  10  per  cent  paid  by  the  as- 
sociation as  against  4  per  cent  paid  by  the  bank. 

Sec.  30.  Mr.  Russell  Sage,  who  has  been  known  for  many 
years  as  one  of  the  leading  financiers  of  the  world,  has  laid 
down  the  following  rules  for  the  guidance  of  those  who  desire 
to  accumulate  capital :  Thrift  is  the  foundation  of  success  in 
business,  of  contentment  in  the  home  and  of  standing  in  so- 
ciety. Out  of  every  dollar  earned,  save  twenty-five  cents ;  save 
seventy-five  cents,  if  you  can,  but  never  less  than  twenty-five 
cents.  Don't  gamble.  Be  circumspect  in  your  amusements. 
Be  courteous  in  your  manners ;  bad  manners  often  spring  from 
a  bad  heart.  Be  honest.  Always  have  the  courage  to  speak 
the  truth.  Don't  depend  on  others.  Even  if  you  have  a  rich 
father,  strike  out  for  yourself.  Cultivate  independence  at  the 
very  outset.  Learn  the  value  of  money.  Realize  that  it  stands, 
when  honestly  made,  as  a  monument  to  your  value  as  a  citi- 
zen. This  is  a  tremendously  practical  world,  and  no  man  can 
get  the  most  out  of  the  world  who  is  hampered  by  a  constant 
want  of  money. 

Sec.  31.  Every  married  man  should  make  a  vigorous  ef- 
fort to  own  a  home.  As  soon  as  he  has  accumulated  sufficient 
money,  he  should  invest  in  a  home,  where  his  family  may  live 
permanently.  A  home  owned  is  more  than  mere  property ;  it 
speaks  to  the  heart,  enlists  the  sentiments  and  ennobles  the 
possessor.  Viewed  as  a  matter  of  economy,  a  man  can  occupy 
a  home  of  his  own  at  less  expense  than  he  can  rent,  and  avoid 
the  inconvenience  and  expense  of  frequent  removals.  In  ad- 
dition, if  he  buys  right,  he  may  have  the  satisfaction  of  know- 
ing that  his  property  is  steadily  increasing  in  value  while  he 
occupies  it. 

Sec.  32.  Credit  is  defined  to  be  the  trust  or  confidence 
placed  by  one  individual  in  another  when  he  assigns  him  money 
or  other  property  in  loan,  and  gives  him  a  stipulated  time  for 
repayment.  The  credit  so  extended  is  often  spoken  of  as  go- 


14  HOW    TO   BUY    AND 

ing  in  debt,  and  is  viewed  in  some  quarters  with  a  sort  of  hor- 
ror. Paradoxical  as  the  assertion  may  seem,  it  is  safe  to  say 
that  no  man  ever  accumulated  much  property  without  ju- 
diciously going  in  debt.  The  fact  that  a  young  man  has  the 
courage  to  go  into  debt  to  provide  a  home  for  his  family  of 
itself  inspires  confidence ;  and  so  in  the  larger  and  more  specu- 
lative deals  in  real  estate,  the  man  who  has  the  temerity  to  go 
judiciously  into  debt,  leaving  a  safe  margin  between  his  as- 
sets and  his  liabilities,  is  looked  upon  with  favor  by  bankers 
and  capitalists,  who  extend  credit,  as  it  is  to  their  advantage 
to  keep  their  money  employed  on  good  security  in  earning  in- 
terest. If  everyone  were  to  wait  until  he  could  pay  cash  in 
full  for  each  parcel  of  real  estate  he  purchased,  the  transactions 
in  real  estate  would  be  limited  in  number  and  a  few  individ- 
uals would  be  large  land  owners.  This  state  of  things  is  over- 
come by  the  partial  payment  of  the  purchase  price  in  money 
and  by  the  giving  of  credit  for  the  remainder. 

Sec.  33.  There  are  certain  species  of  investment  which 
the  investor  who  desires  to  be  successful,  will  avoid,  at  least 
until  he  has  accumulated  so  much  that  a  slight  loss  will  not 
materially  embarrass  him  and  until  he  is  thoroughly  familiar 
with  investments  in  general.  Among  the  things  to  be  avoided 
are  the  treasury  stocks  of  mining  companies,  rubber  planta- 
tion schemes,  buying  diamonds  on  the  installment  plan,  and 
in  fact,  every  get-rich-quick  scheme.  No  legitimate  enterprise 
can  pay  from  15  per  cent  to  300  per  cent  per  annum,  for  any 
great  length  of  time,  and  meet  its  obligations.  The  corporate 
bond,  which  apparently  promises  absolute  security,  is  not  al- 
ways secure,  and  guaranteed  stock  is  a  misnomer.  Every 
young  man  and  woman  should  make  one  resolve  early  in  life, 
and  that  is  to  buy  no  shares  of  treasury  stock.  Stock  certifi- 
cates, in  many  cases,  are  the  equivalents  of  so  much  paper. 
Paper  is  cheap. 

Sec.  34.  On  the  contrary,  it  may  be  stated,  as  a  general 
proposition,  that  real  estate  is  the  most  judicious  investment, 
as  it  enhances  in  value  the  most  steadily,  and  yields  the  best 
returns.  The  security,  the  increase,  and  the  income  are  the 
three  essentials  to  be  sought  for  in  making  an  investment. 


REAL  ESTATE  AT  A  PROFIT  15 

CHAPTER  III. 

HOW  AND  WHERE  TO  BUY. 

This  Chapter  Concerns  City  Lands  and  Country  Lands — Importance  of  Close 
Buying — Exercising  Good  Judgment — What  Good  Judgment  Consists  of — Qualities 
Requisite  in  the  Successful  Operator — Most  Successful  Man  is  He  Who  Makes  Closest 
Analysis — How  to  Strengthen  the  Judgment — Suggestions  from  Real  Estate  Brokers — 
Points  to  be  Kept  in  Mind — Center  of  Business — Expansion  from  Center  Generally 
in  One  Direction — Object  of  Buying  at  Center — Advance  Information  as  to  Contem- 
plated Improvements — Frontage  Measure  of  Gain — Corners — Points  to  be  Considered 
in  Buying  a  Home  Place — How  to  Get  at  the  Facts — Counseled  to  Buy  Slowly — 
Elucidation  of  Old  Maxim  "Let  Buyer  Beware" — Paying  All  Cash  and  Paying  Part 
Cash;  Illustration — Figuring  Percentages;  Importance  of  Knowing  How — Undesir- 
able Properties;  What  the  Investor  Should  Avoid — Good  Advice  from  a  "Mortgage 
Lifter" — Modern  Farming  Reduced  to  a  Science — Opportunities  in  the  Northwest — 
Farming  Lands  Steadily  Growing  in  Value — Farming  Safe  and  Profitable — Effect  of 
Suburban  Trolley  Lines  on  Farming  Lands — Big  Demand  for  Newer  and  Cheaper 
Lands — Farm  Buyer  Must  be  Guided  by  His  Health,  Tastes  and  Previous  Training — 
Real  Estate  Purchase  Chart  for  City  Buyers,  with  Comments  Thereon. 

NOTE.  In  this  connection,  read  also  Chapters  on  "Options  and  Purchase 
Agreements,"  "Deeds,"  "Mortgages  and  Trust  Deeds,"  "Taxes  and  Insurance,"  "Cer- 
tificates and  Abstracts  of  Title,"  "Escrows,"  "Making  a  Loan,"  and  "How  and 
When  to  Sell." 

Sec.  35.  A  man  of  excellent  judgment,  who  had  made  a 
close  study  of  the  matter,  said :  "The  majority  of  people  take 
a  long  time  in  which  to  buy,  a  long  time  in  which  to  sell,  and 
no  time  to  study  their  investments ;  whereas,  they  should  study 
the  investment  a  long  time,  buy  slowly  and  sell  quickly  when 
prices  have  reached  the  goal  point." 

In  any  line  of  business,  one  may  buy  more  readily  than  he 
can  sell ;  therefore,  it  becomes  necessary  to  exercise  the  greater 
care  in  buying.  In  merchandising,  good  buyers  assert  that 
more  profit  is  made  in  close  buying  than  in  any  other  part  of 
the  business.  Judicious  and  economical  buying  depends  on 
the  exercise  of  judgment. 

Sec.  36.  "Judgment  is  that  faculty  of  the  mind  whereby 
one  thing  is  perceived  of  another  and  the  reverse,  and  a  ready 
conception  gained  thereby  of  things  and  events."  In  order 
to  exercise  judgment,  one  must  cultivate  the  power  of  giving 
attention.  It  is  a  power  that  may  be  cultivated  by  anyone, 
and  simply  means  to  analyze,  compare  and  weigh  every  report 
that  is  brought  to  the  mind  by  the  senses.  The  acquisition 
of  accurate  and  exact  knowledge  of  things  and  events  can  only 
be  gained  by  attention  and  application.  He  who  so  gains  knowl- 
edge must  have  full  confidence  in  his  own  ability  to  correctly 
compare  one  thing  with  another  before  he  can  impress  that 


16  HOW    TO    BUY   AND 

ability  upon  others.  Such  ability  is  soon  recognized  and  the 
man  possessing  it  is  said  to  have  "good  judgment."  If  he  be 
a  real  estate  dealer,  cautious  capitalists  ask  him  to  decide  be- 
fore they  loan  money  on  a  mortgage  or  purchase  real  estate. 
His  advice  is  sought  by  rich  and  poor  alike  and  a  large  portion 
of  the  investing  public  waits  on  his  word.  His  inherent  ability 
alone  would  not  have  sufficed ;  it  was  by  paying  attention  that 
he  acquired  materials  for  reflection,  formulated  rules  of  action 
and  maxims  of  conduct,  which  at  length  cumulated  into  sa- 
gacity or  judgment,  that  quality  of  the  mind  which,  above  all 
others,  distinguishes  one  man  from  another. 

Sec.  37.  "Confidence,  courage  and  capital,"  said  a  leading 
real  estate  dealer  of  Los  Angeles,  "are  the  foundation  stones 
on  which  to  rear  a  large  city,"  and  these  also  are  the  elements 
requisite  for  the  successful  buying  and  selling  of  real  estate. 
The  qualities  requisite  in  the  successful  real  estate  operator 
are:  (i)  aptness  and  resourcefulness;  (2)  ability  to  quickly 
grasp  and  comprehend  the  conditions;  (3)  alertness  to  take 
advantage  of  opportunities,  (4)  and  the  power  to  patiently 
master  detail. 

Sec.  38.  Men  who  have  made  a  success  in  a  particular 
line  of  business  are  said  to  be  "lucky" — favored  by  fortune, 
the  multitudes  think.  Such  men,  consciously  or  unconsciously, 
follow  a  system,  pursue  a  method,  and  analyze  a  proposition 
along  lines  that  lead  to  success.  The  minute  observation, 
close  study,  serious  thought  and  good  judgment,  exercised 
by  such  men  are  overlooked  or  minimized.  A  war  correspond- 
ent states  that  the  success  of  the  Japanese  at  Port  Arthur  was 
due  to  a  previous  thorough  analysis  of  the  method  of  reducing 
that  fortress.  He  writes:  "The  Japanese  have  a  passion  for 
detail  and  a  mania  for  precision ;  they  are  so  practical  they 
must  plainly  see  on  paper  what  they  project.  They  live  by 
system.  They  have  reduced  accomplishment  to  a  problem  of 
economics.  They  believe,  with  some  of  the  greatest  minds, 
that  the  most  successful  man  is  he  who  makes  the  closest 
analysis." 

Sec.  39.  The  intending  investor,  even  before  he  has  ac- 
cumulated any  money,  can  cultivate  and  strengthen  his  judg- 
ment by  taking  note  of  the  sales  of  real  estate.  Let  him  as- 


REAL  ESTATE  AT  A  PROFIT  17 

certain  by  inquiry  as  many  details  as  possible  of  each  sale  and 
the  opinion  of  men  apparently  qualified  to  know,  as  to  whether 
or  not  the  place  was  sold  at  a  bargain  price.  He  thus  will  be- 
come acquainted  with  the  value  of  property  and  when  he  is 
prepared  to  buy  will  be  in  a  position  to  buy  to  good  advantage. 
If  one  is  too  busy  to  look  up  a  desirable  place  to  purchase,  he 
should  consult  a  reliable  real  estate  broker,  and  ascertain  if 
the  broker  has  on  his  lists  any  properties  such  as  the  purchaser 
desires.  If  he  has  none,  he  will  gladly  seek  them  for  the  pro- 
posed purchaser  at  no  expense  to  the  latter.  The  broker  may 
be  able  to  give  the  purchaser  valuable  suggestions  as  to  the 
history  and  prospective  value  of  any  property  examined.  Real 
estate  brokers  as  a  rule  are  ready  talkers  and  the  buyer  should 
receive  their  random  recommendations  with  caution,  and  en- 
deavor to  cultivate  his  own  judgment  as  to  real  estate  values. 
The  writer  does  not  wish  to  be  placed  on  record  as  decrying 
real  estate  brokers ;  they  have  been  sufficiently  maligned. 
Real  estate  brokers  create  and  stimulate  activity  in  real  estate 
transactions  and  without  them,  in  many  cases,  real  estate 
values  would  decline  and  the  real  estate  market  be  very  dull 
indeed. 

Sec.  40.  In  buying  real  property,  the  buyer  should  keep  in 
mind  four  important  points,  viz: 

(i.)    The  object  or  end  for  which  the  property  is  intended. 

(2.)  If  the  property  in  question  fulfills,  or  will  fulfill, 
that  object. 

(3.)  If  the  property  can  be  purchased  at  the  minimum  of 
cost. 

(4.)     Is  the  property  readily  salable  at  cost? 

Sec.  41.  In  every  city,  there  is  a  point  which  is  conceded 
to  be  the  center  of  the  business  district.  That  point  is  appar- 
ently determined  by  the  number  of  people  who  pass  a  given 
spot  within  a  certain  time.  If  fifty  persons  per  minute  pass  a 
given  spot  as  against  one  person  per  minute  at  another  point, 
it  is  evident  that  the  ratio  between  the  two  for  advertising  and 
sale  purposes  is  nearly  fifty  to  one.  For  this  reason,  merchants 
pay  enormous  rents  for  the  sake  of  locating  where  the  people 
"most  do  congregate."  From  this  center  of  business,  there  will 
be  lines  of  business  radiating  in  all  directions.  With  the  advent 


18  HOW   TO   BUY   AND 

of  new  and  a  better  class  of  improvements,  the  center  of  busi- 
ness will  change,  and  change,  as  a  rule,  in  one  direction,  and 
that  direction  will  be  determined  by  the  length  and  width  of 
the  principal  business  streets,  and  the  character  of  the  im- 
provements thereon.  As  the  change  goes  on,  there  will  be  a 
"decaying"  end  and  a  "growing"'  end  of  the  city.  To  buy  in  the 
"decaying"  end,  would  be  to  buy  where  property  is  at  a  stand- 
still or  is  depreciating.  Property  in  a  "decaying"  section  will 
not  be  readily  salable,  as  there  will  be  little  demand  for  it. 
Merchants  will  be  forced  to  leave  the  "decaying"  end  and  come 
as  close  as  possible  to  the  active  center  in  order  to  retain  cus- 
tomers. The  observant,  judicious  investor  will  take  note  of  the 
tendency  of  events  in  his  city,  and  will  buy,  according  to  his 
means,  in  advance  of  the  growth  of  the  business  section,  and 
hold  the  property  until  a  demand  is  created.  Real  estate  at 
the  time  he  buys,  may  be  dull  and  dormant ;  so  much  the  bet- 
ter, as  he  will  then  be  able  to  buy  at  a  bargain  price  and  upon 
his  own  terms ;  but  he  must  have  the  foresight  to  see  that  there 
surely  will  be  a  demand  in  the  future  for  the  property  by  rea- 
son of  expansion  of  business  and  increase  in  population.  His 
purchase  should  be  something  that  somebody  else  eventually 
must  have. 

Sec.  42.  The  ultimate  object  of  acquiring  land  in  the  cen- 
ter of  the  business  district  is  to  obtain  the  highest  and  most 
continuous  returns  in  the  way  of  rent.  The  merchant,  who  is 
the  tenant,  must  pay  a  uniform  rent  whether  trade  is  dull  or 
brisk.  The  merchant  pays  not  only  for  the  use  of  the  land  and 
the  improvements,  but  for  whatever  adds  to  the  value  or  desir- 
ability of  the  location.  Where  several  separate  parcels  of  land 
are  equally  accessible  and  good,  that  which  is  most  central 
will  be  most  desirable,  provided  the  improvements  thereon 
are  as  good  as  those  on  the  surrounding  parcels.  The  center 
is  limited  in  area,  of  necessity,  and  the  demand  for  it  is  greater 
than  the  supply.  Where  the  value  of  real  estate  consists  prin- 
cipally of  buildings  and  improvements,  as  is  the  case  in  cities, 
location  becomes  of  paramount  importance.  Men  naturally 
like  to  measure  their  wealth  and  enterprise  with  their  fellows, 
and,  if  possible,  to  out-class  them ;  hence,  when  the  increase 
of  population  warrants  capitalists  in  doing  so,  they  erect  new 
and  modern  business  buildings  which  draw  tenants,  even  at 


REAI,  ESTATE  AT  A  PROFIT  19 

higher  rates  of  rental,  from  the  older  buildings  of  competing 
capitalists.  The  highest  types  of  modern  business  buildings  are 
almost  always  erected  on  corners  where  light  and  air  are  ac- 
cessible on  two  sides  thereof,  and  the  change  in  the  center  of 
business  will  leap  along  the  principal  street,  from  one  cross 
street  to  another,  in  the  direction  of  improvement. 

Sec.  43.  The  erection  of  new  improvements — sometimes 
the  report  that  new  improvements  are  projected — will  give  an 
impetus  to  the  values  of  adjoining  properties,  and  the  increase 
in  values  will  be  the  more  pronounced  if  the  improvements 
are  such  as  will  concentrate  a  large  number  of  people  at  a 
given  point.  The  improvements  concentrate  the  people;  the 
people  draw  the  merchants;  the  merchants  demand  the  store 
rooms ;  the  land  owners  either  improve  or  sell  to  those  who  de- 
sire to  improve,  and  the  demand  being  greater  than  the  supply, 
values  rise.  Advance  information  of  projected  improvements 
enables  one  to  buy  in  a  choice  locality  and  to  the  best  advan- 
tage. Transfers  of  real  estate  are  reported  through  the  med- 
ium of  the  newspapers,  by  real  estate  agents,  who  take  credit 
for  the  sale,  together  with  a  statement  of  the  nature  of  the  pro- 
jected improvements,  and  such  reports  are  given  out  almost  as 
soon  as  the  deals  are  made ;  but  the  improvements  many  times 
are  not  erected  for  months  afterwards.  By  buying  close  to 
where  improvements  are  to  be  made,  one  may  take  advantage 
of  the  rise  in  values  which  improvments  will  bring  about.  All 
reports  as  to  contemplated  improvements  should  be  investi- 
gated thoroughly,  as  investments  cannot  be  successfully  made 
on  the  strength  of  mere  rumors.  A  source  of  great  profit  to 
the  owners  of  electric  roads  are  the  land  companies  organized 
by  them  and  which  buy  in  advance  of  improvements  along  the 
lines  of  such  roads. 

Sec.  44.  Where  the  intending  investor  is  unable  to  pay 
several  hundred  dollars  per  front  foot  for  close-in  business 
property,  he  should  go  farther  out,  where  prices  range  lower, 
or  on  to  a  side  street,  running  parallel  with  the  principal  street, 
and  there  buy.  At  various  points  along  the  principal  streets, 
usually  at  their  intersection  with  cross  streets,  there  is  the 
nucleus  of  a  little  business  community,  and  at  one  of  these 
points  the  investment  should  be  made.  Corners  are  picked  up 


20  HOW    TO   BUY    AND 

early  and  held  firmly;  they  command  higher  prices  than  ad- 
joining inside  properties,  but  are  generally  more  desirable  as 
they  are  capable  of  more  advantageous  improvement.  If  the  in- 
vestor  cannot  secure  a  corner,  he  should  buy  an  inside  im- 
proved lot,  from  which  he  will  obtain  an  income,  and  if  that 
be  beyond  his  reach,  should  buy  an  inside  vacant  lot  adjoining 
or  close  to  improved  property. 

Sec.  45.  Where  land  is  sold  at  so  much  per  front  foot, 
frontage,  even  though  a  lot  be  irregular  in  shape  or  shallow  in 
depth,  becomes  the  measure  of  increase  in  gain.  The  rate  per 
front  foot  should  always  be  taken  into  account,  as  that  is  the 
basis  of  comparing  the  relative  value  of  two  or  more  parcels, 
although  one  parcel,  because  of  advantageous  location  or  other- 
wise, may  be  more  desirable  than  another.  Extensive  front- 
age is  always  desirable,  particularly  if  it  be  partially  improved 
and  extends  from  a  corner,  and  this  is  especially  true  if  the 
improvements  are  on  that  portion  most  distant  from  the  cor- 
ner. The  return  in  the  way  of  rental  from  the  improvements 
may  be  low  as  against  the  value  of  the  entire  parcel ;  but  if  the 
parcel  be  divided,  and  sufficient  frontage  retained  for  the  im- 
provements, the  improved  portion  will  show  a  higher  and  cred- 
itable rate  in  the  way  of  rent,  and  can  be  more  readily  sold; 
and  the  corner,  having  an  ample  frontage  on  two  sides  for  an 
ordinary  business  building,  can  safely  be  held  until  it  can  sub- 
sequently be  sold  at  a  considerable  increase. 

Sec.  46.  Another  means  of  gain  open  to  the  real  estate 
operator  is  the  placing  of  sub-divisions  on  the  market.  This, 
in  effect,  consists  in  buying  land  at  wholesale  and  selling  it  at 
retail.  (See  also  Chapter  on  Sub-divisions.) 

Sec.  47.  If  the  object  for  which  the  property  is  intended 
is  a  home,  to  be  occupied  by  the  purchaser  and  his  family,  it 
is  manifest  that  there  will  be  many  more  things  to  be  taken 
into  consideration  than  if  the  property  be  purchased  as  an  in- 
vestment merely. 

When  property  is  purchased  for  a  home,  it  is  important 
to  consider: 

(i.)     The  general  character  of  the  neighborhood. 

(2.)     The  reputation  of  the  immediate  neighbors. 

(3.)     The  healthfulness  of  the  locality. 


REAL  ESTATE  AT  A  PROFIT  21 

(4.)  The  proximity  to  school  and  to  the  church  edifice 
which  the  family  will  attend. 

(5.)  The  distance  from  the  home  to  the  business  office 
of  the  head  of  the  family. 

(6.)  The  situation  of  the  "house  with  respect  to  receiving 
the  sun  in  front  in  the  morning  or  in  the  afternoon. 

(7.)  The  convenience  of  the  interior  arrangement  of  the 
house. 

(8.)  The  cheerful  or  gloomy  aspect  of  trie  structure,  and 
numerous  other  points  favorable  and  unfavorable. 

Sec.  48.  In  getting  at  the  facts,  the  prospective  buyer, 
upon  making  "his  first  inquiry  in  regard  to  a  property,  should 
let  the  owner  or  agent  do  most  of  the  talking.  The  buyer 
should  pay  strict  attention  to  what  is  told  him  and  make  a 
mental  note  of  it  as  well  as  of  everything  shown  him  in  con- 
nection with  the  property.  The  buyer  should  view  the  prop- 
erty by  approaching  it  from  several  different  directions.  If 
the  prospective  buyer  is  desirous  of  asking  questions,  'he  will 
usually  get  better  results  by  deferring  his  interrogatories  until 
his  second  visit.  He  should  then  take  the  initiative  and  prose- 
cute his  probing  with  rapid,  decisive  and  leading  questions, 
not  forgetting  to  introduce  some  inquiries  which  must,  in  the 
very  nature  of  things,  be  unexpected  on  the  part  of  trie  seller. 

Sec.  49.  The  intending  buyer  should  not  immediately  pur- 
chase the  parcel  of  real  estate  first  offered  him  at  the  price  first 
named.  He  should  ascertain  the  price,  terms  and  other  par- 
ticulars of  several  like  parcels  in  that  and  other  localities,  and 
compare  one  with  another  for  the  purpose  of  determining  which 
offers  the  best  investment.  He  should  endeavor  so  to  buy  that 
if  he  were  to  sell  tomorrow  he  could  sell  at  a  price  in  advance 
of  that  which  he  had  paid ;  in  other  words,  to  buy  "under  the 
market." 

Sec.  50.  When  the  advantages  of  a  particular  piece  of 
property  have  been  pointed  out  to  an  inexperienced  buyer,  and 
he  has  allowed  his  imagination  to  revel  in  the  possibilities  of 
profit,  or  his  pride  to  expand  at  the  prospect  of  hearing  the 
many  compliments  his  friends  would  express  were  they  to  be- 
hold him  snugly  installed  in  that  cozy  dwelling,  he  is  apt  to 
manifest  symptoms  of  feverish  haste  and  a  nervous  anxiety  to 


22  HOW    TO    BUY   AND 

purchase.  The  old  rule  to  buy  slowly  should  be  adhered  to 
by  the  inexperienced  on  all  occasions.  The  intending  buyer 
should  disguise  his  anxiety,  if  he  feels  any,  think  the  matter 
over  for  a  few  days,  and  endeavor  to  get  a  clear,  calm  and  un- 
biased view  of  the  proposition  as  an  entirety.  There  may  be- 
come incidental  or  secondary  considerations  that  have  been 
overlooked.  The  property  may  have  been  offered  to  others 
at  a  lower  figure  and  declined  for  some  reason. 

Sec.  51.  The  rule  is  that  the  buyer  is  bound  to  use  his 
eyes  and  ears  to  discover  manifest  defects  in  the  thing  sold. 
He  takes  the  risk  upon  himself  where  the  thing  is  subject  to 
his  examination,  as  it  is  in  the  case  of  real  estate.  "Let  the 
buyer  beware,"  is  the  old  maxim.  "The  law  presumes,"  says 
Curwen  on  Abstracts,  "that  the  buyer  will  never  rely  on  the 
opinion  or  random  recommendations  of  the  seller;  and  there- 
fore any  representations  on  the  part  of  the  seller,  or  his  agent, 
as  to  his  own  opinion,  or  as  to  what  others  have  told  him  re- 
garding their  opinion  of  the  value  of  the  property,  or  as  to  the 
chance  of  its  increasing  in  value,  or  as  to  the  probability  of  its 
being  resold  at  an  advance,  even  though  the  seller  knows  them 
to  be  false,  do  not  amount  to  fraud."  An  assertion  by  the 
owner,  or  his  agent,  of  a  material  fact,  as,  that  the  premises 
bring  a  certain  monthly  rental,  may  be  relied  on,  as  the  misrep- 
resentation of  such  a  fact,  if  it  be  a  material  inducement  to  the 
other  party  in  making  his  contract  to  purchase,  entitles  the 
person  on  whom  it  is  practiced,  to  repudiate  the  contract.  An 
action  of  deceit  will  lie  against  one  who  makes  a  false  repre- 
sentation of  a  material  fact,  knowing  it  to  be  false,  or  when 
he  makes  it  recklessly  of  his  own  knowledge  without  knowing 
whether  it  is  true  or  not,  and  upon  which  another  acts  to  his 
injury. 

Sec.  52.  The  investor  should  understand  that  he  will  of- 
tentimes not  be  required  to  pay  cash  in  full  when  he  buys.  Oc- 
casionally he  can  buy  for  one-third  cash,  and  frequently  for 
one-half  cash.  Banks  ordinarily  will  loan  not  over  one-half 
of  the  appraised  value  of  the  property,  such  appraisal  being 
placed  on  the  property  by  the  agent  of  the  bank.  Whenever 
he  can  do  so,  the  buyer  should  endeavor,  in  the  event  that  he 
is  to  pay  only  part  cash,  to  have  the  seller  take  back  a  mort- 


REAL,  ESTATE  AT  A  PROFIT  23 

gage  for  the  unpaid  portion.  In  this  way,  he  can  obtain  a 
larger  loan  on  the  property  "he  is  to  acquire  than  if  he  went 
to  a  bank  or  some  private  party  to  obtain  a  loan.  The 
mortgage  should  run  for  from  three  to  five  years,  and  if  the 
borrower  thinks  he  will  be  able  to  pay  off  the  entire  mortgage 
before  the  expiration  of  that  time,  a  clause  can  be  inserted  to 
the  effect  that  the  borrower  may  pay  off  the  mortgage  at  any 
time  by  paying  the  interest  to  the  date  of  payment,  and  inter- 
est for  one  month  additional  as  a  bonus.  Where  a  deal  of  this 
sort  is  made,  the  seller  makes  a  deed,  conveying  the  premises 
to  the  buyer,  and  the  buyer,  thereupon,  pays  part  in  cash  and 
in  evidence  of  the  remainder  gives  the  seller  the  buyer's  prom- 
issory note,  secured  by  mortgage  on  the  premises.  The  deed 
and  the  mortgage  are  placed  on  record  almost  simultaneously. 
Let  us  suppose  *he  investor  to  be  buying  an  improved  prop- 
erty, yielding  an  income  in  the  way  of  rent  of  $20  per  month, 
or  $240  per  annum,  and  that  the  price  is  $4,000 ;  that  the  seller 
is  willing  to  accept  $2,000  in  cash,  the  remainder  to  be  evi- 
denced by  the  mortgage  note  of  the  buyer  for  $2,000,  such 
note  to  'be  payable  three  years  after  date,  to  bear  interest 
at  the  rate  of  6  per  cent  per  .annum,  net,  payable  quarterly,  or 
interest  amounting  to  $120  per  annum.  If  the  buyer  had  paid 
cash  in  full,  the  rental  of  $240  per  annum  would  be  equivalent 
to  6  per  cent  on  the  purchase  price ;  as  the  buyer  must  care 
for  the  taxes,  insurance  and  repairs,  his  income  will  be  dimin- 
ished by  these  items.  On  the  proposition  as  above  outlined, 
the  buyer  will  receive  an  income  of  $240  per  annum,  and  will 
expend  $120  for  interest  and  something  for  taxes,  insurance 
and  repairs,  leaving  an  apparent  surplus  in  his  favor.  His  net 
return,  or  rate  of  interest,  on  his  cash  investment  of  $2,000 
will,  of  course,  be  less  than  6  per  cent. 

Sec.  53.  It  is  quite  important  that  the  investor  should 
be  able  to  figure  percentages.  How  to  multiply  a  given  amount 
by  a  certain  rate  and  obtain  a  correct  result,  is  comparatively 
easy,  but  how  to  ascertain  the  rate  when  the  amount  of  the 
percentage  is  given,  is  not  so  well  understood.  The  rule  is: 
Divide  the  number  considered  the  percentage  by  I  per  cent 
of  the  other  number.  In  the  above  illustration,  let  us  suppose 
the  investor,  at  the  end  of  two  years,  sold  the  property  for 


24  HOW    TO    BUY    AND 

$5,000,  the  buyer  to  assume  the  mortgage,  and  that  the  insur- 
ance per  year  was  $10,  the  taxes,  $16,  and  repairs,  $14,  a  total 
of  $40  per  annum,  or  $80  for  the  two  years.  In  this  case  we 
are  considering  the  cost  to  the  buyer  as  $2,000,  as  that  was  the 
amount  of  cash  he  invested.  The  statement,  therefore,  would 
be: 

Gain    $1,000.00 

Rent  received,  $240  per  annum  x  2 480.00 


Total  gross  gain   $1,480.00 

Less  taxes,  insurance   and    repairs,   $40    per  an- 
num x  2 $  80 

Interest,  $120  per  annum  x  2 240      320.00 


Net  gain    $1,160.00 

One  per  cent  of  investment,  $2,000,  is  $20;  dividing  $1,160 
by  20  equals  58,  covering  a  period  of  two  years,  or  29%  per  an- 
num, net. 

Sec.  54.    Undesirable  properties  should  be  avoided. 

(i.)  Don't  buy  key  lots.  To  illustrate  a  key  lot:  Let  us 
suppose  that  the  principal  street  is  called  Main  and  that  a  street 
running  at  right  angles  with  and  across  it  is  called  Lincoln. 
Lots  face  on  Main  and  are  150  feet  in  depth.  The  lot  facing 
on  Lincoln,  immediately  in  the  rear  of  the  Main  street  lots, 
even  though  an  alley  intervened,  would  be  a  key  lot.  If  the 
lots,  as  sub-divided,  faced  on  Lincoln,  instead  of  Main,  and 
were  each  50  feet  in  width  by  150  feet  in  depth,  someone  might 
buy  two  of  them  and  subdivide  into  three  lots,  each  50  by  100 
feet,  facing  on  Main,  so  that  the  third  lot,  in  such  case,  would 
be  a  key  lot.  A  barn,  or  the  rear  of  a  store,  in  either  case, 
might  obstruct  the  view  of  a  house  situate  on  the  key  lot.  Some 
banks  will  not  make  loans  on  key  lots. 

(2.)  Don't  buy  lots  adjoining  saloons,  livery  stables,  black- 
smith shops,  planing  mills,  undertaking  parlors,  and  the  like. 
The  inhabitants  of  houses  close  to  this  class  of  improvements 
are  apt  to  be  troubled  with  flies,  disagreeable  odors,  noises  or 
uncanny  sensations. 

(3.)  Don't  buy  a  corner  lot  on  a  street,  the  inhabitants  of 
which  take  so  much  pride  in  the  street  and  in  its  exclusiveness 


REAL  ESTATE  AT  A  PROFIT  25 

as  a  residence  street  that  they  would  not  trade  with  the  occu- 
pant of  the  corner  if  it  were  improved. 

Sec.  55.  The  real  estate  investor  should  buy  and  sell  phil- 
osophically. If  he  finds,  after  having  purchased,  that  he  could 
have  bought  that  particular  lot  at  a  lower  price,  or  could  have 
bought  a  more  desirable  lot  at  the  same  price,  or  after  having 
sold,  ascertains  that  he  sold  at  too  low  a  price  on  an  advancing 
market,  he  should  not  do,  as  some  have  done,  play  the  baby  act 
and  blubber,  but  rather  should  think  a  few  intense  thoughts. 
He  should  seek  to  know  wherein  his  weakness  lies  and  whether 
or  not  he  had  bought  or  sold  too  hastily  and  without  sufficient 
investigation,  and  should  make  firm  resolutions  as  to  future 
conduct  in  this  respect ;  otherwise,  his  subsequent  transactions 
will  be  a  repetition  of  previous  errors.  He  should  not  worry ; 
worry  irritates  but  does  not  benefit.  A  calm  analysis  of  the 
cause  of  the  failure  should  lead  to  the  determination  to  apply 
an  efficient  remedy  in  the  future,  and  this  course  will  strength- 
en the  judgment.  One  should  crystallize  past  experience  into 
fixed  principles  for  future  guidance,  and  even  go  so  far  as  to  set 
down,  briefly  and  tersely,  such  principles  in  a  memorandum 
book,  where  they  can  be  reviewed  occasionally  and  kept  fresh 
in  the  memory.  The  investor,  before  investing,  should  make 
up  his  mind  to  lose  gracefully,  if  lose  he  must.  As  old  Cargill 
said:  "Any  fool  kin  be  a  good  winner,  but  the  public  has  a 
lingerin'  an'  strong  affection  for  the  feller  that  kin  smile  when 
he's  losin'.  He's  the  real  sport;  'lie's  the  man  they  like." 

Sec.  56.  Several  years  ago  a  book  entitled  "Mortgage 
Lifters"  was  published,  and  in  the  introduction  it  is  stated  that 
"There  are  thousands  and  thousands  of  farmers  in  this  great 
country  who  have  bought  farms  with  but  very  little  cash  to 
pay  down,  have  given  a  mortgage  for  the  balance,  and  in  the 
course  of  a  shorter  or  longer  period  have  paid  it  off,  and  now 
own  their  farms  free  of  all  incumbrance."  One  of  these  "Mort- 
gage lifters"  gives  the  following  good  advice :  "Marry  a  good 
wife,  buy  a  farm,  be  honest,  industrious  and  saving,  trust  in 
God,  and  go  ahead."  A  young  man  should  not  fear  to  go  in 
debt  to  a  reasonable  amount  for  a  farm,  provided  he  is  healthy, 
industrious  and  ambitious.  What  constitutes  a  "reasonable 
amount"  must  be  decided  by  each  individual  in  view  of  all  the 
circumstances. 


26  HOW    TO    BUY    AND 

Sec.  57.  Farming  in  the  twentieth  century  is  not  a  mere 
matter  of  guess.  Farming  is  being  reduced  to  a  science.  The 
farmer  studies  the  soil  and  its  needs.  The  modern  farm  is  a 
field  of  diversified  interests.  A  portion  is  devoted  to  forage 
plants;  another  portion  is  set  to  an  orchard  of  desirable  trees 
and  vines.  The  barnyards  and  barns  are  well  arranged  and  en- 
close only  the  best  of  live  stock.  Every  avenue  is  made  to 
pay  a  profit  on  the  investment.  The  farmer  studies  the  soil 
and  its  needs.  Irrigation  to  him  is  an  agency  of  perfection  in 
soil  cultivation.  Irrigation  supplies  moisture  at  the  time  when 
plants  and  trees  require  it  and  in  the  ratio  demanded  for  cor- 
rect growth.  With  judicious  cultivation,  seed  time  and  har- 
vest are  certainties.  The  modern  farmer  is  an  educated  power 
in  the  land.  His  influence  is  noticeable  everywhere  that  men 
of  determination  and  force  of  character  are  wanted.  Many  of 
our  modern  farmers  are  making  from  three  thousand  to  ten 
thousand  dollars  per  annum. 

Sec.  58.  Parts  of  Washington,  Oregon  and  California, 
and  other  western  states,  offer  good  farming  opportunities,  and 
possess  all  of  the  natural  conditions  and  few  of  the  disadvant- 
ages of  the  older  settled  districts.  The  soil  is  good,  climate 
desirable  and  natural  conditions  are  adapted  to  general  farm- 
ing. No  section,  however,  offers  homes  to  men  who  will  not 
work.  Farms  are  made  and  not  found.  The  location  selected 
must  be  converted  into  a  farm  by  the  owner.  Opportunities 
await  the  industrious  and  energetic  young  man  throughout  the 
Northwest,  and  the  young  man  who  can  and  will  do  something 
is  welcome  in  every  locality. 

Sec.  59.  The  desirable  farming  lands  in  the  United  States 
are  steadily  growing  more  valuable.  There  has  been  an  aston- 
ishing demand  for  more  land  in  northwest  during  the  past  few 
years.  A  prominent  agricultural  journal  (the  Orange  Judd 
Farmer),  which  has  investigated  the  causes  for  this,  sum- 
marizes the  situation  as  follows: 

(i.)  The  choice  agricultural  lands  of  the  central  Missis- 
sippi valley  have  reached  extraordinarily  high  prices.  Some 
Illinois  farmers  have  sold  at  $200  per  acre  land  that  they  them- 
selves "took  up"  as  a  free  gift  under  the  homestead  act — farm- 
ing land  only,  in  central  Illinois,  which  has  reached  this  figure 


REAL  ESTATE  AT  A  PROFIT  27 

because  farming  pays  good  interest  on  that  valuation,  not  be- 
cause of  proximity  to  cities.  In  Iowa,  indeed  all  through  the 
central  valleys,  land  values  have  also  risen  enormously. 

(2.)  The  extension  of  electric  trolley  lines  from  the  large 
cities  through  farming  sections  to  suburban  towns  has  made  a 
demand  for  farming  lands  along  these  lines.  Wealthy  indi- 
viduals in  the  cities  have  bought  up  farms  along  the  electric 
lines,  have  demolished  the  old-time  farm  houses,  and  have 
erected  fine  residences,  which  are  occupied  chiefly  in  summer. 
Some  of  these  new  owners  carry  on  experimental  farming  on  a 
magnificent  scale  and  with  but  very  little  profit. 

(3.)  Farming  in  the  central  west  is  so  profitable,  so  safe, 
and  still  further  advances  in  land  values  are  so  constantly  ex- 
pected, that  men  of  large  means  are  buying  these  central  lands 
and  operating  them  on  a  large  scale.  Farming  is  becoming 
as  fashionable  as  it  is  profitable,  but  in  the  central  west  agri- 
culture requires  more  and  more  capital. 

(4.)  Many  thousands  of  farmers  in  moderate  circum- 
stances, hired  men  or  others,  who  would  like  to  go  to  farming 
but  who  cannot  afford  to  pay  from  $50  to  $200  per  acre  for  land, 
are  casting  about  for  good  lands  that  can  be  bought  at  moderate 
prices.  The  great  majority  of  these  people  want  such  lands 
located  in  the  western  and  northwestern  states  or  the  Canadian 
northwest,  because  they  prefer  the  inspiring  climate  and  the 
social  conditions  of  that  favored  region. 

(5.)  But  little  privation  is  now  required  from  settlers  who 
move  onto  these  newer  lands  in  northern  Michigan,  Wiscon- 
sin, Minnesota  or  the  northwest  of  the  states  or  Canada.  Al- 
most every  part  of  these  regions  is  within  convenient  reach 
of  railroad  transportation.  If  in  any  section  the  mails, 
schools,  churches,  etc.,  are  at  all  deficient,  they  are  rapidly 
brought  to  perfection  as  population  increases.  It  is  easy  to 
develop  homes  and  farms  on  the  cheaper  lands  of  the  west  and 
northwest,  compared  to  the  privations  suffered  by  the  early 
settlers  in  the  central  west. 

(6.)  The  man  who  can  sell  out  in  the  central  west  at  from 
$50  to  $200  per  acre,  and  buy  lands  in  the  newer  sections  at 
from  $3  to  $25  per  acre,  is  very  much  disposed  to  do  so.  He 
has  had  one  taste  of  the  enormous  profit  accruing  from  the 


28  HOW    TO    BUY    AND    SELL 

natural  increase  in  the  value  -of  land.  He  is  hungry  for  an- 
other dose  of  such  profits.  He  is  still  hungrier  for  more  acres 
for  himself  and  his  children.  If  he  can  sell  out  at  a  price  that 
will  enable  him  to  pay  for  160  acres  or  more  for  each  member 
of  his  family,  and  also  have  a  snug  capital  left  he  is  very  much 
disposed  to  do  so. 

(7.)  Each  of  the  foregoing  reasons  is  enough  to  warrant 
the  present  activity  in  the  real  estate  market  throughout  the 
west.  An  uncontrollable  impulse  for  more  land  has  got  con- 
trol of  many  people's  minds.  They  are  ready  to  "swarm" 
onto  the  newer  and  cheaper  lands.  This  movement  of  popula- 
tion promis.es  to  be  even  larger  in  the  future  than  ever  before. 
The  fever  to  migrate  and  to  open  up  new  land  has  occurred 
about  once  in  every  decade,  but  has  been  most  powerful  at 
periods  of  about  20  to  30  years  apart. 

Sec.  60.  The  "Real  Estate  Purchase  Chart"  (Form  No. 
i),  which  follows,  is  designed  to  afford  the  intending  investor 
a  systematic  guide  in  the  matter  of  covering  all  the  points  of 
his  intended  purchase,  and  it  may  also  be  used  as  a  memoran- 
dum of  purchase  and  sale.  In  commenting  on  this  Form, 
would  say : 

(i.)  "Description."  It  is  well,  at  the  outset,  to  obtain  an 
accurate,  legal  description  of  the  premises,  as  such  description 
is  convenient  in  preparing  the  deed  and  other  papers  and  as  a 
means  of  checking  the  description  given  in  the  certificate  of 
title  and  other  instruments.  See  also  Chapter  on  Deeds. 

(2.)  "Side  of  Street."  In  real  estate  parlance  there  are  two 
sides  to  a  street — the  "clean"  side  and  the  "dirty"  side.  The 
"dirty"  side  is  that  towards  which  the  wind  blows  and  conse- 
quently the  side  which  receives  the  most  dust;  the  "clean" 
side  is  the  opposite  side. 

(3.)  "Restrictions."  Restrictions  in  some  cases  are  bur- 
densome and  in  others  are  beneficial.  Beauty  and  uniformity 
are  secured  on  a  residence  street  by  providing  that  no  business 
buildings  shall  be  erected  and  that  all  houses  shall  cost  not 
less  than  a  specified  sum  and  shall  be  placed  a  certain  distance 
from  the  street.  The  question  of  restrictions  is  important  and 
should  be  looked  into  while  the  intending  purchaser  is  conduct- 
ing his  negotiations. 


REAIy  ESTATE  AT  A  PROFIT  29 

(4.)  The  purchaser  should  ascertain  if  sewer  is  laid  and 
connections  made  with  it;  also  if  the  assessments  for  sewer, 
sidewalk,  grading  and  curbing  have  been  paid. 

(5.)  "Things  the  Owner  will  Throw  In."  In  some  in- 
stances the  owner  of  a  house,  in  order  to  make  a  sale,  will 
"throw  in"  a  gas  stove,  or  coal  stove,  or  carpets  or  mattings  on 
the  floors.  The  buyer,  of  course,  should  not  mention  this  part 
of  the  transaction  until  he  believes  he  has  reached  a  bed-rock 
price. 

(6.)  "Shades,  Gas  and  Electric  Light  Fixtures."  In  Cali- 
fornia, the  custom  is,  when  a  house  is  newly  completed,  to  put 
shades  on  all  windows,  and  (these  shades  and  their  renewals  re- 
main as  part  of  the  realty  when  the  house  changes  hands. 
Lighting  fixtures  are  presumably,  but  not  necessarily,  a  part  of 
the  realty.  Whether  or  not  the  shades  and  lighting  fixtures 
are  to  remain  as  a  part  of  the  realty,  and  be  included  in  the 
purchase  price,  should  be  specified  in  every  agreement  of  sale, 
for  the  sake  of  avoiding  misunderstandings. 

(7.)  For  explanations  in  regard  to  Insurance,  Taxes,  Title, 
and  Escrow,  see  Chapters  with  these  captions. 

FORM  NO.  i— REAL  ESTATE  PURCHASE  CHART, 

Official  Description  of  Premises  is:       Known  as  No.   ...,  

street,  between  street  and  street,  on  side  of 

street      Fronts Size  of  lot feet.      Building  restric- 
tions       Alley    feet.     Street  is    Sewered 

Sidewalked Graded  Curbed 

Paved Water Key  lot Corner  lot 

BUILDINGS. 

story,    rooms.        Erected    about     years 

since Modern ,  bath ,  toilet fuel  gas 

,  gas  and  electricity ,  fireplace ,  mantel 

hall ,  cellar ,  furnace ,  inside  finish  is  

walls   are ,   shades ,   floors ,   sideboard 

Stable Lawn Trees ,  flowers Rents  for 

$ per  month.       Water  rate  is ,  paid  by Key 

at Things  owner  will  "throw  in" Insured  for 

$ Expires Will  be  transferred  with charge 


PRICES  AND  TERMS. 
Price  (including  shades,  gas  and  electric  light  fixtures,  and. 

is  $ ,  payable  as  follows : 

$ as  a  deposit  and  part  payment. 


30 


HOW   TO   BUY   AND   SEU, 


$ by  a  negotiable  promissory  note,  secured  by  a  mortgage  on 

said  premises,  note  to  bear  date ,  be  payable after  date, 

with  interest  at  rate  of %  per  annum,  net,  payable and  be 

executed  by in  favor  of 

$ being  balance,  to  be  paid  in  cash  upon  delivery  of 

deed. 

of  taxes  for to  be  paid  by 

Title    . 


DIAGRAM  OP  LOCATION. 

J  I       NORTH       I  L 


Street 

fc— 

o 

V 

£ 

£ 

H 

ID 
CD 

w 
K 
III 

OJ- 

1 

Strcot 

• 

• 

•UMMAU 

II 


SOUTH. 


ir 


the  price  and  upon  the  terms  aforesaid. 


cer- 
tificate of  title,  issued  by 

to  be  furnished 

by  owner,  showing  mar- 
ketable title  in  

free  and  clear  of  incum- 
brances,  except 

Escrow.  All  papers 
and  the  said  monies  to 
be  placed  in  escrow 

with  within 

days  from  this 

date. 

In  consideration  of 

$ ,  being  the  de- 

'posit  and  part  payment 
above  mentioned,  the  re- 
ceipt whereof  is  hereby 
acknowledged,  I  hereby 
^sell  the  premises  above 
'described  to  .  . .  at 


Dated  at 


(Seal) 


•  -.,  190 


REAL  ESTATE  AT  A  PROFIT  31 

CHAPTER  IV. 

OPTIONS   AND   PURCHASE   AGREEMENTS, 

Contract  Defined — Certain  Contracts  Invalid  Unless  in  Writing — Contract  Must 
Contain  the  Whole  Agreement — Excludes  All  Prior  Negotiations — Seller  Must  Produce 
Marketable  Title — Performance  or  "Tender";  How  Effected — Full  Instructions  as  to 
Buying  the  Property  and  Executing  the  Contract — Specific  Performance — Rights  of 
Buyer  and  Seller — Meaning  of  "Incumbrances"  and  of  "Usual  Covenants" — Vendor's 
Lien — Damages  for  Breach  of  the  Contract — Extinguishing  or  Rescinding  the  Con- 
tract— Practical  Forms,  Nos.  2  to  12,  of  Options,  Contracts,  Etc. 

Sec.  61.  A  contract  is  an  agreement  between  competent 
parties  to  do  or  not  to  do  a  certain  thing. 

Sec.  62.  A  real  estate  contract  may  be  (i)  an  agreement 
to  sell,  (2)  an  agreement  to  buy,  or  (3)  an  agreement  to  buy 
and  sell — and  relating  to  the  transfer  by  one  party  to  another 
of  a  certain  property  at  a  certain  price  and  upon  certain  terms. 

Sec.  63.  The  following  contracts  are  invalid  unless  the 
same,  or  some  note  or  memorandum  thereof,  is  in  writing  and 
subscribed  by  the  party  to  be  charged  or  his  agent,  namely: 

(i.)  Every  contract  for  the  sale  of  lands,  or  any  interest 
therein ; 

(2.)  Every  contract  that  by  its  terms  is  not  to  be  per- 
formed within  one  year  from  the  making  thereof; 

(3.)  Every  contract  to  answer  for  the  debt,  default  or 
misdoings  of  another. 

(4.)  In  California  an  agreement  employing  or  authoriz- 
ing an  agent  or  broker  to  purchase  or  sell  real  estate  for  com- 
pensation or  commission,  must  be  in  writing. 

(5.)  Also,  such  an  agreement,  if  made  by  the  agent  of  the 
party  sought  to  be  charged,  is  invalid,  unless  the  authority  of 
the  agent  be  in  writing  subscribed  by  the  party  sought  to  be 
charged. 

Sec.  64.  Not  only  should  a  contract  for  the  purchase  or 
sale  of  real  estate  be  in  writing,  but  it  should  contain  within 
itself,  without  resort  to  external  evidence,  the  whole  agree- 
ment, including  the  names  of  the  contracting  parties,  the  price 
to  be  paid,  and  all  of  the  stipulations  intended  to  bind  the  par- 
ties, and  such  a  description  of  the  land  as  will  enable  any  one 
acquainted  with  it  to  learn,  upon  reading  the  contract,  what 
property  was  intended  to  be  sold.  It  is  not  necessary  that  the 
memorandum  should  be  in  one  written  instrument.  The  ne- 


32  HOW    TO   BUY   AND 

gotiations  containing  the  offer  and  acceptance  may  have  been 
conducted  by  means  of  correspondence.  All  writings  so  con- 
nected by  their  own  internal  evidence  constitute  one  document 
in  law.  (Curwen  on  Abstracts.) 

Sec.  65.  A  contract,  when  once  reduced  to  writing,  and 
executed  and  delivered  by  the  parties  thereto,  becomes  the  sole 
repositary  of  the  agreement  between  them,  and  excludes  all 
prior  negotiations  and  conferences  on  the  subject.  If  the 
terms  of  the  written  agreement  are  ambiguous,  they  may  be 
explained  verbally;  but  no  evidence  to  contradict  what  is  in- 
corporated in  the  writing  can  be  offered  to  show  that  the  par- 
ties at  the  time  intended  something  different,  unless  it  is 
proven  that  there  was  fraud  in  the  transaction.  The  writing 
must  be  signed  by  the  party  to  be  charged  and  is  valid  though 
not  signed  by  the  party  insisting  on  the  performance  of  it.  It 
is  not  necessary  that  the  signing  should  be  at  the  end  of  the 
paper. 

Sec.  66.  It  is  an  implied  condition  in  all  sales  that  the 
seller  shall  produce  a  fair  marketable  title  to  which  no  reason- 
able objection  can  be  made.  For  definition  of  marketable  title, 
see  Chapter  I,  Sec.  17.  If,  upon  investigation  of  the  title,  it 
is  discovered,  before  the  deed  is  delivered,  that  the  seller  does 
not  possess  title  to  the  extent  required  by  the  contract,  he  is 
not  liable  in  damages  for  the  defect ;  the  buyer  is  at  liberty  to 
take  the  land  with  the  defect,  abating  a  proportionate  part  of 
the  price ;  or,  if  the  defect  is  material,  the  buyer  may  decline  to 
go  on  with  the  bargain.  If  there  are  any  incumbrances  on  the 
property  not  disclosed  at  the  time  of  the  sale,  the  buyer  may 
require  them  to  be  paid  off  before  he  takes  his  deed.  No  pur- 
chaser is  bound  to  accept  a  title  dependent  upon  doubtful  ques- 
tions of  law  or  upon  facts  which  are  impracticable  for  him  to 
investigate  with  satisfactory  results  at  the  time  the  deed  is 
tendered.  (Curwen  on  Abstracts.) 

Sec.  67.  It  sometimes  happens,  after  one  has  entered  into 
an  agreement  to  purchase  a  certain  piece  of  land,  that  the  seller 
declines  to  execute  and  deliver  a  deed,  in  performance  of  his 
part  of  the  agreement.  The  obligation  of  the  buyer  in  such 
case  is  complied  with  by  an  offer  of  performance,  or  "tender" 
as  it  is  called.  A  tender  to  be  good  must  be  absolute,  uncon- 


REAL  ESTATE  AT  A  PROFIT  33 

ditional  and  strictly  within  the  terms  of  the  contract.  A  tender 
does  not  bar  nor  extinguish  the  debt;  tht  debtor  is  still  liable 
to  pay  it;  but  tender  bars  the  claim  to  subsequent  damages, 
interests  and  costs.  The  offer  may  be  made  to  the  seller  wher- 
ever he  can  be  found.  The  tender  must  be  made  in  United 
States  gold  coin,  or  in  legal  tender  certificates.  It  is  always 
safe  to  produce  and  show  the  money.  A  tender  for  more 
money  than  is  due  is  good  for  what  is  due.  The  seller  some- 
times purposely  evades  the  buyer  in  order  that  tender  cannot 
be  made.  In  such  a  case,  the  buyer  must  use  reasonable  dili- 
gence to  find  the  seller  within  a  reasonable  distance  from  the 
residence,  or  place  of  business  of  the  seller.  If  the  contract 
of  sale  fixes  a  time  for  the  tender,  it  must  be  made  at  that  time, 
within  reasonable  hours,  and  not  before  nor  afterwards.  In 
California,  the  obligation  for  the  payment  of  money  is  extin- 
guished by  a  due  offer  of  performance,  if  the  amount  is  imme- 
diately deposited  in  the  name  of  the  creditor  in  a  bank  of  good 
repute,  and  notice  thereof  is  given  to  the  creditor.  An  offer  of 
partial  performance  is  of  no  avail ;  nor  is  an  offer  of  complete 
performance  of  any  effect  unless  the  person  making  it  is  able 
and  willing  to  perform  according  to  the  offer. 

Sec.  68.  A  majority  of  real  estate  sales  are  made  through 
real  estate  agents  or  brokers.  Each  agent  has  his  own  form  of 
agreement.  The  buyer  makes  a  deposit  of  say  from  $50  to 
$500,  according  to  the  magnitude  of  the  transaction,  when  he 
signs  the  contract  of  sale.  The  larger  the  deposit  the  less 
likely  the  buyer  is"  to  forfeit  it.  The  agent  then  brings  the 
contract  of  sale  to  the  seller  for  his  signature,  by  way  of  ratifi- 
cation of  what  the  agent  has  done.  At  least,  that  is  what  the 
agent  should  do.  This  brings  the  terms  of  the  contract  of  sale 
before  both  the  buyer  and  the  seller,  and  each  is  then  com- 
mitted in  writing  to  the  transaction.  The  seller  should  make 
it  a  rule  to  receive  the  deposit  into  his  possession,  and  if  it  is 
in  the  form  of  a  check,  to  have  check  converted  into  cash  as 
quickly  as  possible.  The  seller  should  see  that  agreement 
provides  that  if  the  buyer  does  not  pay  the  balance  of  the  pur- 
chase price  within  a  certain  time,  (say  ten  to  fifteen  days)  the 
deposit  shall  be  forfeited  to  the  seller  as  liquidated  damages. 
The  seller  should  have  an  understanding  with  the  agent  to  the 


34  HOW    TO   BUY   AND 

effect  that  if  the  deposit  is  forfeited  and  the  sale  not  consum- 
mated, the  agent  will  accept  5%  of  the  amount  of  the  deposit 
for  his  services  in  the  matter.  The  contract  should  also  pro- 
vide who  is  to  pay  the  taxes,  if  any,  which  have  been  assessed 
but  are  unpaid  at  the  date  of  the  sale,  or  which  have  been 
partially  paid.  If  there  is  a  mortgage  on  the  premises,  which 
the  debtor  is  to  assume,  the  agreement  should  so  provide,  with 
a  statement  to  the  effect  that  the  seller  will  pay  the  interest  on 
the  mortgage  to  the  date  of  the  transfer.  If  the  premises  are 
insured,  the  agreement  should  provide  for  the  transfer  of  the 
unexpired  policy  of  insurance,  and  should  state  whether  or  not 
the  same  is  to  be  assigned  to  the  buyer,  without  charge.  In 
short,  the  more  complete  the  agreement,  the  more  smoothly 
and  effectually  will  the  deal  be  carried  through  after  the  con- 
tract has  been  signed.  The  contract  should  be  executed  in  du- 
plicate by  both  of  the  parties  and  one  copy  be  delivered  to  and 
retained  by  each  party.  The  purchaser,  where  he  buys  through 
a  real  estate  broker,  has  nothing  to  do  with  the  payment  of  the 
broker's  commission,  although  he  does,  as  a  matter  of  fact,  pay 
it  indirectly.  The  commission  must  be  borne  by  the  seller, 
and  arranged  for  by  him.  It  sometimes  happens  that  some 
miserly  chap  will  not  allow  a  commission  on  the  sale  of  his 
property,  and  in  case  the  seller  will  deal  only  through  and 
upon  the  advice  of  a  certain  broker,  the  buyer,  if  he  ardently 
desires  the  property,  may  find  it  expedient  to  arrange  to  pay 
the  broker  a  commission.  The  contract,  in  any  case,  is  the 
final  act  of  purchase  and  sale ;  and  a  complete  agreement  pre- 
supposes a  prior  investigation  into  facts  on  which  to  base  it ; 
this  investigation  in  the  case  of  real  estate  will  be  more  read- 
ily attained  by  following  the  "Real  Estate  Purchase  Chart" 
(Form  No.  i)  hereinbefore  given. 

Sec.  69.  Where  the  contract  is  for  value,  and  is  made  by 
persons  competent  on  both  sides  to  bind  themselves,  gives 
rights  which  the  parties  may  mutually  enforce  against  each 
other,  and  its  enforcement  in  terms  is  practicable  and  neces- 
sary for  the  purpose  of  complete  justice,  a  court  of  equity  will 
ordinarily,  in  its  sound  discretion,  at  the  suit  of  either  buyer 
or  seller,  decree  a  specific  performance  of  the  agreement  by  re- 
quiring the  buyer  to  pay  the  price  and  the  seller  to  execute  a 
deed.  (Curwen  on  Abstracts.) 


REAt  ESTATE  AT  A  PROFIT  35 

Sec.  70.  Where  the  contract  of  sale  is  silent  on  the  sub- 
ject, the  seller  is  entitled  to  the  possession  of  the  premises  un- 
til he  delivers  his  deed  and  receives  payment  in  full;  but  the 
buyer  is  considered  as  the  equitable  owner  from  the  date  of  the 
contract  and  is  entitled  to  any  increase  in  the  value  of  the  land, 
and  is  subject  to  the  risk  of  any  decrease  or  loss. 

Sec.  71.  In  Form  No.  2,  it  will  be  noted  that  the  premises 
are  to  be  conveyed  "free  and  clear  of  incumbrances."  In  Cali- 
fornia the  word  "incumbrances"  includes  taxes,  assessments 
and  all  liens  upon  real  property. 

Sec.  72.  In  California,  the  law  provides  that  where  the 
seller  inserts  in  an  agreement  for  the  sale  of  real  property,  the 
phrase  "to  give  the  usual  covenants,"  he  thereby  binds  himself 
to  insert  in  the  deed,  conveying  the  property,  the  following 
covenants :  "Seisin,"  "quiet  enjoyment,"  "further  assurance," 
"general  warranty"  and  "against  incumbrances."  (See  also 
Chapter  on  Deeds). 

Sec.  73.  Where  a  sale  of  lands  is  made  by  one  person  to 
another,  and  the  seller  retains  the  legal  title  as  security  for 
the  payment  of  the  remainder  of  the  purchase  price,  the  seller 
is  called  the  vendor  and  the  buyer,  the  vendee,  and  the  seller 
has  what  is  called  a  vendor's  lien  on  the  premises.  "A  vendor 
retaining  the  title  may  sue  at  law  for  the  balance  of  the  pur- 
chase money,  or  file  his  bill  in  equity  for  the  specific  perform- 
ance of  the  contract,  and  take  an  alternative  decree  that  if  the 
purchaser  will  not  accept  a  conveyance  and  pay  the  purchase 
price,  the  premises  be  sold  to  raise  such  money,  and  that  the 
vendee  pay  any  deficiency  remaining  after  the  application  of 
the  proceeds  upon  such  sale.  The  vendor  is  at  liberty  to  ask 
either  for  a  decree,  directing  performance,  and  in  case  of  re- 
fusal, a  sale  of  the  premises,  or  a  decree  barring  the  right  of 
the  vendee  to  claim  a  conveyance  under  the  contract.  He  may, 
however,  insist  upon  the  sale  where  the  performance  is  re- 
fused, and  is  not  bound  to  take  a  mere  foreclosure  of  the 
vendee's  right  to  a  deed."  (Sparks  vs.  Hess,  15  Cal.  186.) 
See  Forms  Nos.  4,  5  and  7. 

Sec.  74.  In  the  case  of  a  breach  of  a  contract  to  convey 
real  estate,  the  detriment  caused  is  deemed  to  be  the  price  paid 
and  the  expense  properly  incurred  in  examining  the  title  and 


36  HOW    TO   BUY    AND 

preparing  the  necessary  papers,  with  interest  thereon.  If  the 
party  failing  to  convey  has  acted  in  bad  faith,  there  is  also  to 
be  added  the  difference  between  the  price  agreed  to  be  paid 
and  the  value  of  the  estate  agreed  to  be  conveyed,  at  the  time 
of  the  breach,  and  the  expenses  properly  incurred  in  preparing 
to  enter  upon  the  land.  (California  Civil  Code,  Sec.  3306.) 

Sec.  75.  In  case  of  a  breach  of  a  contract  to  purchase  an 
estate  in  real  property,  the  detriment  is  deemed  to  be  the 
excess,  if  any,  of  the  amount  which  would  have  been  due  to 
the  seller,  under  the  contract,  over  the  value  of  the  property 
to  him.  (Cal.  C.  C,  Sec.  3307.) 

Sec.  76.  A  contract  may  be  extinguished  by  its  rescission, 
and  if  the  contract  has  not  been  recorded,  this  may  be  accom- 
plished by  the  destruction  or  cancellation  of  the  contract,  or  of 
the  signatures  of  the  parties  liable  thereon,  by  the  consent  of 
all  such  parties.  Where  the  contract  has  been  recorded,  its 
extinguishment  may  be  effected  by  means  of  a  written  instru- 
ment of  rescission,  duly  signed  and  acknowledged  by  all  of  the 
parties  liable  on  the  contract,  and  when  such  instrument  of 
rescission  has  been  placed  of  record  it  becomes  notice  to  all 
parties  that  the  recorded  contract  has  been  extinguished. 

Sec.  77.  A  party  who  has  made  a  contract,  may  rescind 
without  the  consent  of  the  other  parties  to  the  contract,  if  he 
finds  that  his  consent  was  given  or  obtained  by  means  of 
duress,  menace,  fraud  or  undue  influence  exercised  by  or  with 
the  connivance  of  the  other  party  to  whom  he  rescinds  or  of 
any  other  party  to  the  contract  jointly  interested  with  the 
party  rescinding,  or  if  the  consideration  of  such  other  party 
fails  or  becomes  entirely  void,  or  if  such  consideration,  before 
being  rendered  to  the  party  rescinding,  fails  in  a  material 
respect.  The  party  rescinding,  upon  discovering  facts  which 
entitle  him  to  rescind,  must  rescind  promptly,  and  must  re- 
store to  the  other  party  everything  of  value  received  from 
him  under  the  contract ;  or  he  must  offer  to  restore  the  same 
upon  the  condition  that  the  other  party  shall  do  likewise,  unless 
the  latter  is  unable  or  positively  refuses  to  do  so;  in  other 
words,  the  parties  must  place  themselves  in  the  positions  in 
which  they  were  just  prior  to  entering  into  the  contract.  (Cal. 
Civil  Code.) 


REAL,  ESTATE  AT  A  PROFIT  37 

Sec.  78.  Every  person  who  has  a  considerable  number 
of  real  estate  deals  to  transact,  should  be  sufficiently  familiar 
with  agreements  of  purchase  and  sale  to  draw  up  an  agree- 
ment such  as  will  fully  and  clearly  .set  forth  the  terms  of  each 
transaction.  In  submitting  the  following  forms  in  this  con- 
nection, the  author  does  so  in  the  hope  that  the  user  will  find 
them  concise,  pertinent  and  specially  adapted  to  ordinary 
transactions  of  the  kind. 

Sec.  79.  A  corporation,  with  respect  to  its  contracts,  is 
placed  on  a  different  footing  than  an  individual.  The  powers 
of  a  corporation  are  m  its  Board  of  Directors.  (See  Section 
87-b-c.)  The  President  or  other  officer  of  a  corporation  can- 
not give  a  binding  option  or  other  contract  for  sale  of  land 
unless  such  act  is  authorized  or  ratified  by  the  Board  of  Di- 
rectors of  the  Corporation.  For  form  of  resolution  authorizing 
such  sale  see  Form  No.  12. 

FORM  NO.  2— BRIEF  MEMORANDUM  OF  SALE. 

Los  ANGELES,  CAL.,  Feb.  5th,  1905. 

Received  of  George  BHsh,  the  sum  of  Five  Hundred  Dollars  ($500.00), 
being  a  deposit  and  part  payment  on  Lot  Thirty-three  (33)  in  Block  Fif- 
teen (15)  of  the  Downey  Tract,  in  the  City  of  Los  Angeles,  State  of  Cal- 
ifornia, as  per  sale  thereof  made  this  date  through  Jones  &  Johnson  to 
said  Blish  for  the  sum  of  Six  Thousand  Dollars  ($6,000.00),  payable 
in  cash,  the  undersigned  to  furnish  an  unlimited  certificate  of  title  show- 
ing said  premises  free  and  clear  of  all  incumbrances  at  this  date,  and  a 
grant,  bargain  and  sale  deed,  conveying  said  premises  to  said  Blish;  the 
balance  of  said  money  and  the  said  deed  to  be  placed  in  escrow  with  the 
Title  Insurance  &  Trust  Company  of  Los  Angeles,  within  ten  (10)  days 
from  this  date.  If  the  balance  of  Five  Thousand  Five  Hundred  Dollars 
($5,500.00)  be  not  paid,  as  aforesaid,  within  said  ten  (10)  days,  the  above 
deposit  shall  be  forfeited  to  the  undersigned  as  liquidated  damages. 

(Signed)  PETER  JACKSON. 

The  above  memorandum  of  sale  is  hereby  agreed  to. 

(Signed)  GEORGE  BLISH. 

FORM  NO.  3— A  MORE  COMPLETE  MEMORANDUM  OF  SALE. 

Memorandum  of  Sale,  in  duplicate,  made  this  loth  day  of  February, 
1905,  between  and  for  the  account  of  Hiram  Balch,  the  Seller,  to  Samuel 
Smith,  the  Buyer,  by  Byron  &  Clark,  agents,  of  the  following  described 
premises,  situate  in  the  County  of  Los  Angeles,  State  of  California,  to-wit : 

Lot  15  of  the  Alexandre  Weill  Tract,  in  the  City  of  Los  Angeles,  as 
per  map  of  said  tract  recorded  in  the  office  of  the  County  Recorder  of  said 
.County  of  Los  Angeles,  in  Book  6  of  Miscellaneous  Records,  at  page  300, 


38  HOW    TO    BUY    AND 

for  the  sum  of  Two  Thousand  Dollars   ($2,000.00)  in  United  States  Gold 

Coin,  on  the  following  terms : 

$200.00  as  a  deposit  and  part  payment,  the  receipt  whereof,  by  the  seller, 

is  hereby  acknowledged. 

$800.00  to  be  evidenced  by  a  negotiable  promissory  note,  executed  by  the 
buyer  in  favor  of  the  seller,  and  secured  by  a  mortgage  on  said 
premises,  said  note  to  bear  date  February  loth,  1905,  and  to  be  pay- 
able three  years  after  date,  with  interest  at  the  rate  of  6  per  cent 
per  annum,  net,  payable  quarterly. 

$1000.00,  being  the  balance  of  the  purchase  price,  to  be  paid  in  cash  within 
fifteen  days  from  the  date  hereof. 

The  seller,  within  said  fifteen  days,  is  to  furnish  an  unlimited  certifi- 
cate of  title,  made  by  the  Title  Insurance  and  Trust  Co.,  of  Los  Angeles, 
Cal.,  showing  title  vested  in  seller,  free  and  clear  of  incumbrances,  and 
a  good  and  sufficient  deed,  conveying  said  premises  to  the  buyer ;  and  the 
buyer,  within  said  time,  is  to  execute  and  deliver  said  note  and  mortgage, 
and  pay  the  balance  of  said  purchase  price;  all  papers  to  be  exchanged, 
and  the  said  monies  to  be  paid,  at  the  office  of  said  Byron  &  Clark,  within 
said  fifteen  days. 

In  the  event  this  contract  is  not  approved  by  the  seller,  or  if  seller 
cannot  furnish  a  marketable  title  to  said  premises,  the  above  mentioned 
deposit  is  to  be  returned  to  the  buyer. 

If  the  buyer  shall  fail  to  comply  with  his  part  of  this  agreement 
within  said  fifteen  days,  the  buyer  shall  retain  for  himself  the  aforesaid 
deposit  as  liquidated  and  stipulated  damages. 

Witness  the  hands  and  seals  of  the  Seller,  the  Buyer,  and  the  said 
Agents,  the  day  and  year  first  above  written. 

HIRAM  BALCH,  (Seal) 

SAMUEL  SMITH,  (Seal) 

BYRON  &  CLARK,  Agents, 
Per  L.  A.  BYRON. 

FORM  NO.  4— A  FORMAL  AGREEMENT. 

AGREEMENT  FOR  SALE  OF  REAL  ESTATE. 

This  agreement,  made  and  entered  into  this  20th  day  of  June,  A.  D. 
1905,  by  and  between  Frank  Smith,  of  the  City  and  County  of  San  Fran- 
cisco, State  of  California,  hereafter  called  the  vendor,  the  party  of  the 
first  part,  and  James  Jackson,  of  the  County  of  Los  Angeles,  State  afore- 
said, hereinafter  called  the  purchaser,  party  of  the  second  part, 

WITNESSETH  :  That  the  said  vendor  agrees  to  sell  and  convey,  and 
the  said  purchaser  agrees  to  purchase,  upon  the  terms  and  conditions 
hereinafter  expressed,  all  that  certain  tract  of  land  situate  in  the  County 
of  Los  Angeles,  State  of  California,  bounded  and  more  particularly  de- 
scribed as  follows,  to-wit: 

(Description.) 

The  purchase  price,  payable  for  said  property,  is  the  sum  of  $20,- 


REAL  ESTATE  AT  A  PROFIT  39 

ooo.oo,  in  United  States  gold  coin,  of  which  the  sum  of  $5,000.00  has 
this  day  been  paid,  the  receipt  whereof  is  hereby  acknowledged;  and  the 
further  sum  of  $5,000.00  shall  be  paid  on  the  20th  day  of  July,  1905,  and 
the  remainder  of  the  purchase  money,  to-wit:  the  sum  of  $10,000.00, 
shall  be  paid  upon  the  consummation  of  the  purchase  as  herein  provided. 
All  payments  shall  be  made  at  the  office  of  the  German  Savings  &  Loan 
Society  in  the  City  and  County  of  San  Francisco,  for  the  account  of  said 
vendor. 

The  purchaser  shall  have  20  days  from  and  after  this  date  in  which 
to  examine  the  title  to  said  property ;  if,  upon  such  examination,  the  title 
be  found  to  be  good  and  valid,  the  purchase  shall  be  consummated  within 
five  days  thereafter.  If,  however,  upon  such  examination,  the  title  be 
found  not  to  be  good  and  valid,  the  purchaser  shall  specify  in  writing 
his  objections  thereto,  and  furnish  the  same  to  the  vendor,  who  shall 
have  20  days  thereafter  in  which  to  perfect  the  title.  Upon  such  title 
being  perfected,  the  vendor  shall  give  the  purchaser  written  notice  thereof, 
by  registered  mail,  addressed  to  said  purchaser  at  Room  420  Byrne 
Block,  in  the  City  of  Los  Angeles,  California,  and  the  purchase  shall  be 
consummated  within  five  days  thereafter.  If  the  title  be  not  so  perfected, 
within  the  said  20  days,  however,  this  agreement  shall  be  cancelled  and 
all  monies  paid  on  account  thereof  shall  be  returned  to  the  purchaser. 
If  the  title  be  or  be  made  good  and  valid,  and  the  purchaser  shall  fail 
to  consummate  the  purchase  as  herein  provided,  the  vendor  shall  retain 
for  himself  all  moneys  received  on  account  hereof,  as  liquidated  and 
stipulated  damages. 

Upon  the  consummation  of  the  purchase,  the  purchaser  shall  pay 
the  further  sum  of  $5,000.00  in  cash,  and  for  the  balance  of  $5,000.00  he 
shall  execute  to  the  vendor  his  negotiable  promissory  note  for  said  sum, 
payable  on  or  before  one  year  thereafter,  with  interest  from  date,  until 
£>aid,  at  the  rate  of  8  per  cent,  interest  payable  quarterly,  together  witih 
a  deed  of  trust  to  a  trustee,  to  be  named  by  the  vendo^  conveying  said 
property  in  trust  as  security  for  the  payment  of  said  note,  which  deed 
of  trust  shall  be  a  first  lien  on  said  property ;  and  the  vendor,  if  required, 
shall  execute  a  tax  agreement  in  the  form  now  in  use  by  the  said  Ger- 
man Savings  &  Loan  Society,  providing,  in  effect,  that  if  the  purchaser 
shall  pay  all  taxes  upon  said  deed  of  trust,  the  vendor  shall  account  for 
all  interest  upon  said  promissory  note  in  excess  of  5  Per  cent  Per  annum. 

The  said  purchaser,  upon  consummation  of  the  purchase,  may  take 
possession  of  said  lands  and  he  hereby  agrees  to  pay  all  taxes  and  as- 
sessments of  whatsoever  nature  or  kind  that  may  be  levied  or  assessed 
hereafter  against  said  premises  or  any  part  hereof,  whenever  the  same 
or  any  of  them  shall  be  due  and  payable. 

The  said  purchaser  agrees  not  to  commit  any  waste  in  or  upon  said 
premises. 

All  of  the  stipulations,  agreements,  covenants,  provisos  and  condi- 
tions herein  shall  bind  the  heirs,  legal  representatives,  successors  or  as- 
signs of  the  parties  hereto  and  each  of  them. 


40  HOW   TO    BUY    AND    SELL 

Time  is  of  the  essence  of  this  agreement  and  of  all  the  obligations 
hereof. 

In  Witness  Whereof,  the  parties  hereto  have  hereunto  set  their  hands 
and  seals  the  day  and  year  first  above  written. 

FRANK  SMITH,  (Seal) 

JAMES  JACKSON.        (Seal) 

FORM  NO.  5— AGREEMENT  FOR  SALE  OF  LOTS,  AND  PROVID- 
ING FOR  BUILDING  RESTRICTIONS,  ETC 

THIS  AGREEMENT,  made  and  entered  into,  in  duplicate,  this  tenth  day 
of  June,  1905,  between  James  A.  Garfield,  the  party  of  the  first  part  here- 
to, and  Alfred  A.  Spinks,  the  party  of  the  second  part ; 

WITNESSETH  :  That  the  said  party  of  the  first  part  in  consideration 
of  the  covenants  and  agreements  on  the  part  of  the  party  of  the  second 
part  hereinafter  contained,  agrees  to  sell  and  convey  unto  the  said  party 
of  the  second  part,  and  said  party  of  the  second  part  agrees  to  buy,  all  those 
certain  lots  or  parcels  of  land,  situate  in  the  City  of  Los  Angeles,  County 
of  Los  Angeles,  State  of  California,  bounded  and  particularly  described 
as  follows,  to-wit:  Lots  Numbers  Five  (5)  and  Six  (6),  in  Block  21  of  the 
West  Adams  Tract,  as  per  map  recorded  in  the  office  of  the  County  Re- 
corder of  the  County  of  Los  Angeles,  State  of  California,  in  Book  2,  page 
53  et  seq.,  of  Maps,  Records  of  said  County,  for  the  sum  of  Three  Thou- 
sand Dollars  ($3,000.00)  gold  coin  of  the  United  States,  and  said  party 
of  the  second  part  agrees,  in  consideration  of  the  premises,  to  pay  to  the 
said  party  of  the  first  part,  in  the  City  of  Los  Angeles,  State  of  California, 
the  said  sum  of  Three  Thousand  Dollars,  as  follows: 

Five  Hundred  Dollars  ($500.00)  cash  on  the  signing  and  delivery 
of  these  presents,  tne  receipt  whereof  is  hereby  acknowledged,  ana  tnc 
balance,  or  sum  of  Fifteen  Hundred  Dollars  ($1500.00)  on  or  before  the 
tenth  day  of  October,  1906,  and  One  Thousand  Dollars  ($1000.00)  on  or 
before  the  tenth  day  of  December,  1007;  all  deferred  payments  to  bear 
interest  at  the  rate  of  six  per  cent  per  annum,  payable  half  yearly. 

Said  party  of  the  second  part  agrees  to  pay  all  taxes  and  assessments 
levied  or  assessed  against  the  said  property  after  the  date  hereof  before 
the  same  become  delinquent,  and  upon  failure  so  to  do  the  party  of  the  first 
part  shall  have  the  right  to  pay  the  same,  with  whatever  costs  and  per- 
centages that  may  be  added,  and  the  amount  so  paid  with  interest  thereon, 
from  the  date  of  payment  until  repaid,  shall  be  secured  hereby,  and  shall 
be  repaid  by  said  party  of  the  second  part  to  said  party  of  the  first  part 
on  demand. 

It  is  further  agreed  that  if  the  party  of  the  second  part  shall  fail 
or  make  default  in  any  of  the  payments  by  said  party  of  the  second  part 
herein  promised  to  be  paid,  as  the  same  mature  or  become  due,  or  of  any 
installment  of  the  interest,  or  shall  fail  to  pay  said  taxes  or  assessments 
as  in  this  contract  provided,  then  the  whole  sums  in  this  contract  to  be 
paid  shall  become  immediately  due  and  payable  at  the  option  of  the  party 
of  the  first  part,  and  suit  may  be  commenced  by  the  said  party  of  the  first 


REAL  .ESTATE  AT  A  PROFIT  41 

part  to  foreclose  this  contract,  or  to  enforce  the  payment  of  said  sum, 
or  for  the  foreclosure  of  this  contract  and  sale  of  the  lands  herein  described. 

Said  party  of  the  second  part  is  to  have  immediate  possession  of  the 
said  land  and  may  continue  in  such  possession  so  long  as  he  performs 
and  observes  this  contract ;  and  upon  failure  to  keep  any  of  the  covenants 
and  agreements  herein  contained,  the  right  of  said  second  party  to  such 
possession  shall  immediately  cease. 

As  soon  as  the  party  of  the  second  part  shall  have  made  said  pay- 
ments, including  taxes  and  assessments,  as  aforesaid,  if  made  within  the 
time  and  manner  aforesaid,  said  party  of  the  first  part  shall,  and  does 
hereby  aeree  to,  convey  said  premises  by  a  deed  of  bargain  and  sale  to  the 
said  party  of  the  second  part,  and  to  furnish  a  certificate  of  title,  showing 
his  title  to  said  lands  to  be  good,  and  free  of  incumbrances. 

This  sale  is  made  subject  to  the  following  conditions,  and  the  said 
deed,  to  be  made  pursuant  to  this  contract,  shall  contain  the  following 
clauses,  namely: 

"PROVIDED,  however,  that  this  conveyance  is  made  and  accepted  upon 
each  of  the  following  conditions,  which  shall  apply  to  and  be  binding 
upon  the  grantee,  his  heirs,  devisees,  executors,  administrators  and  assigns, 
namely:  That  said  premises  shall  be  used  for  residence  purposes  only; 
that  no  cottage,  apartment  house,  double  house,  flat,  lodging  house,  hotel, 
nor  any  building  or  structure  whatever  other  than  a  first-class  private  resi- 
dence at  least  two  stories  in  height,  with  the  customary  out-buildings, 
including  a  private  stable,  shall  be  erected,  placed  or  permitted  on  said 
premises,  or  any  part  thereof;  that  such  residence  shall  cost  and  be  fairly 
worth  not  less  than  Two  Thousand  Dollars,  and  shall  be  located  not  less 
than  30  feet  from  the  front  line  of  said  premises,  and  shall  face  the  front 
line  of  said  premises,  namely,  on  Esmeralda  Street;  that  no  out-building 
or  private  stable  shall  be  erected,  placed  or  permitted  upon  said  premises 
at  a  distance  of  more  than  thirty  feet  from  the  rear  line  of  said  premises, 
nor  until  such  a  residence  shall  have  been  erected  on  said  premises. 

"PROVIDED,  that  as  to  the  grantor  herein,  the  breach  of  any  of  the 
foregoing  conditions  shall  cause  said  premises  to  revert  to  the  said  grantor, 
his  heirs  and  assigns,  each  of  whom  respectively  shall  have  the  right 
of  immediate  re-entry  upon  said  premises  in  the  event  of  any  such  breach ; 
and  as  to  the  owner,  and  the  heirs,  devisees,  executors,  administrators  or 
assigns  of  any  owner,  of  any  other  lot  or  lots  in  said  West  Adams  tract 
adjoining  the  above  described  premises,  the  above  mentioned  conditions 
shall  operate  as  covenants  running  with  the  land,  for  the  benefit  of  all 
such  adjoining  lots  and  owners  of  such  adjoining  lots  in  said  tract,  their 
heirs,  devisees,  executors,  administrators  or  assigns,  and  the  breach  of  any 
such  covenant,  or  the  continuance  of  any  such  breach  may  be  enjoined, 
abated  or  remedied  by  appropriate  proceedings  by  any  or  either  of 
such  owners,  their  heirs  devisees,  executors,  administrators  or  assigns. 

"PROVIDED,  also,  that  the  breach  of  either  of  the  foregoing  conditions, 
or  any  re-entry  by  reason  of  such  breach,  shall  not  defeat  or  render  invalid 
the  lien  of  any  mortgage  or  deed  of  trust  made  in  good  faith,  for  value, 


42  HOW    TO   BUY    AND 

as  to  said  land,  and  any  such  residence,  out-building  or  private  stable  lo- 
cated as  above  provided,  or  any  part  thereof;  provided,  however,  that  the 
breach  of  either  of  said  conditions  or  the  continuance  of  any  such  breach 
may  be  enjoined,  abated  or  remedied  by  appropriate  proceedings,  and  pro- 
vided also,  that  each  of  the  foregoing  conditions  shall  remain  at  all  times 
in  full  force  and  effect  as  against  any  owner  of  said  premises,  or  any  part 
thereof,  by  reason  of  any  breach  thereof  by  any  such  owner,  whether  such 
ownership  is  acquired  by  purchase,  foreclosure,  devise  inheritance  or  in 
any  other  manner. 

"PROVIDED,  that  all  and  each  of  the  restrictions,  conditions  and  cove- 
nants herein  contained  shall  in  all  respects  terminate  and  end,  and  be  of 
no  further  effect,  either  legal  or  equitable,  either  on  any  property  in  said 
West  Adams  tract  or  on  the  parties  hereto,  their  heirs,  successors,  devisees, 
executors,  administrators  or  assigns,  on  and  after  January  i,  A.  D.  1920." 

Time  is  hereby  made  of  the  essence  of  this  contract. 

In  Witness  Whereof,  the  said  parties  hereto  have  hereunto  set  their 
hands  and  seals  the  day  and  year  first  above  written. 

JAMES  A.  GARFIELD,      (Seal) 
ALFRED  A.  SPINKS.        (Seal) 

FORM  NO.  6— BRIEF  OPTION. 

DENVER,  COLO.,  June  loth,  1905. 

Received  of  C.  B.  True,  the  sum  of  Two  Hundred  Dollars,  as  part 
payment  for  the  following  described  Real  Estate,  to-wit:  Lot  7,  in  Block 
10,  of  the  Marlin  Tract,  in  the  city  of  Denver,  Colorado,  as  per  map 
of  said  tract  recorded  in  the  office  of  the  County  Recorder  of  Gunnison 
County,  in  Book  300  of  Miscellaneous  Records,  at  page  29.  The  entire 
price  to  be  paid  for  said  above  described  Real  Estate  is  $1200  (Twelve 
Hundred  Dollars),  and  same  is  to  be  paid  as  follows:  The  remainder 
of  $1000  to  be  paid  in  U.  S.  Gold  Coin  within  ninety  days  from  this  date. 
Title  to  be  perfect;  and  a  good  and  sufficient  Grant  Deed  to  be  executed 
and  delivered  by  the  undersigned  to  said  C.  B.  True,  his  heirs  or  assigns, 
on  or  before  the  loth  day  of  September,  1905,  together  with  an  unlimited 
certificate  of  title  by  a  reputable  title  company,  showing  said  premises 
vested  in  undersigned  clear  of  incumbrances. 

Provided,  however,  that  the  payment  of  $1000  is  tendered  or  paid  on 
or  before  said  date.  If  the  said  payment  of  $1000  is  not  paid  or  tendered 
on  or  before  the  said  2Oth  day  of  June,  1905,  then  this  contract  sh;all  be  void 
and  of  no  further  effect,  and  both  parties  shall  be  released  from  all  obli- 
gations hereunder;  and  in  that  event  the  said  $200  pai4  on  this  date  is 
to  be  retained  by  undersigned  as  liquidated  damages. 

JOHN  GAYLORD. 

FORM  NO.  7— FORMAL  OPTION,  PROVIDING  FOR  MONTHLY 

PAYMENTS. 

This  Option  and  Agreement,  in  duplicate,  dated  this  I9th  day  of 
February,  1905,  made  by  and  between  Joel  Jenkins,  of  the  County  of  Los 


REAL  ESTATE  AT  A  PROFIT  43 

Angeles,  State  of  California,  party  of  the  first  part,  and  the  Builders' 
Wrecking  Company,  a  corporation  organized  and  existing  under  the  laws 
of  said  State,  and  having  its  principal  place  of  business  at  Los  Angeles, 
California,  party  of  the  second  part; 

WITNESSETH,  That  the  said  party  of  the  first  part,  for  and  in  con- 
sideration of  the  sum  of  Five  Hundred  Dollars  ($500.00),  receipt  whereof 
is  hereby  acknowledged,  does  hereby  give  unto  the  said  party  of  the 
second  part  the  exclusive  option  to  purchase  from  him  at  any  time  within 
thirty  (30)  days  from  the  date  hereof,  the  following  described  real  prop- 
erty situated  in  the  City  of  Los  Angeles,  County  of  Los  Angeles,  State 
of  California,  viz: 

Lots  Numbers  Three  (3)  and  Four  (4)  of  the  Dumas  Tract,  for 
the  sum  of  Five  Thousand  Dollars  ($5000.00),  Gold  Coin  of  the  United 
States,  on  the  following  terms  and  conditions : 

The  party  of  the  first  part  agrees  to  renew  this  option  from  month 
to  month  upon  the  payment  to  him  of  the  sum  of  One  Hundred  Dollars 
($100),  which  said  sum  is  to  be  paid  on  or  before  the  iQth  day  of  each 
calendar  month,  commencing  witht  the  ipth  day  of  March,  1905 ;  together 
with  interest  at  the  rate  of  6  per  cent  per  annum  from  date  until  paid  on 
the  monthly  balance  remaining  unpaid  at  the  close  of  each  preceding 
calendar  month,  said  interest  also  to  be  payable  monthly  on  the  said 
iprh  day  of  each  calendar  month,  commencing  March  igth,  1905,  as 
aforesaid,  and  when  said  payments  made  for  said  option  and  for  the  re- 
newals thereof  shall  amount  to  the  sum  of  Five  Thousand  Dollars 
($5000.00)  (provided  said  monthly  installments  of  interest  shall  have  been 
paid  in  the  meantime,  as  hereinabove  mentioned),  or  uoon  the  payment 
of  said  last  named  sum  at  any  time  while  this  option  is  in  force,  the 
party  of  the  first  part  agrees  to  deliver  to  the  party  of  the  second  part 
an  unlimited  certificate  of  title  to  be  issued  by  the  Title  Insurance  &  Trust 
Company  of  Los  Angeles,  California,  showing  the  title  to  the  said  prem- 
ises vested  in  said  party  of  the  first  part,  free  and  clear  of  all  incum- 
brances,  except  such  taxes  and  liens  for  street  or  other  improvements  as 
may  be  assessed  against  said  property  from  the  date  hereof,  together  with 
a  good  and  sufficient  deed  for  said  property,  conveying  the  same  free  and 
clear  of  all  incumbrances,  except  as  aforesaid. 

All  payments  made  hereunder  shall  be  made  at  the  office  of  the  party 
of  the  second  part,  corner  First  and  Spring  Streets,  in  the  City  of  Los 
Angeles,  Cal. 

The  party  of  the  second  part  may  take  possession  of  said  premises 
and  improve  the  same,  and  may  continue  in  such  possession  so  long  as  it 
performs  and  observes  this  contract. 

In  the  event  of  a  failure  of  the  party  of  the  second  part  to  mjake 
said  monthly  payments  of  principal,  or  any  of  them,  or  said  monthly 
installments  of  interest,  or  any  of  them,  or  to  pay  before  delinquency 
said  taxes  or  street  assessments,  or  anv  of  them,  or  to  exercise  this  option 
within  the  time  limited  as  originally  given  or  as  thereafter  extended,  then, 
in  any  such  event,  this  instrument  shall  be  void  and  at  an  end  and  cannot 


44  HOW    TO    BUY    AND 

thereafter  be  exercised,  and  the  amounts  which  have  been  paid  by  the 
party  of  the  second  part  hereunder  shall  be  retained  by  the  party  of  the 
first  part  as  the  consideration  for  the  granting  of  this  option  and  the 
extensions  thereof;  and  in  the  event  of  such  forfeiture,  the  right  of  the 
party  of  the  second  part  to  the  possession  of  said  premises  shall  imme- 
diately cease,  and  all  improvements  placed  on  said  premises  by  said 
party  of  the  second  part  shall  forthwith  become  vested  in  the  party  of 
the  first  part,  and  said  party  of  the  first  part  may  re-enter  said  premises 
and  remove  all  persons  therefrom. 

In  no  event  shall  the  party  of  the  second  part  acquire  any  right 
or  title  in  or  to  said  premises,  or  any  part  thereof,  either  in  law  or  equity, 
until  the  execution  and  delivery  of  the  deed  therefor. 

Time  is  of  the  essence  of  this  option  and  of  all  and  singular  its 
covenants  and  conditions. 

Each  and  all  of  the  covenants  and  conditions  of  this  option  and 
agreement  shall  inure  to  the  benefit  of  and  be  binding  upon  the  heirs, 
executors,  administrators,  successors  and  assigns  of  the  respective  parties, 
hereto. 

In  Witness  Whereof,  the  said  party  of  the  first  part  has  hereunto 
set  his  hand  and  seal,  and  the  said  party  of  the  second  part  has  hereunto 
caused  its  corporate  name  and  seal  to  be  affixed  by  its  President  and  Sec- 
retary, thereunto  duly  authorized  by  resolution  of  its  Board  of  Directors, 
the  day  and  year  herein  first  above  written. 

JOEL  JENKINS,  (Seal) 

(Corporate  Seal)  BUILDERS'  WRECKING  COMPANY, 

By  its  President:     ANDREW  ADAMS. 
By  its  Secretary :    EBEN  EDWARDS. 
(Acknowledgments.) 

FORM  NO.  8-ASSIGNMENT  OF  CONTRACT  OF  SALE. 

KNOW  ALL  MEN  BY  THESE  PRESENTS,  that  I,  Alfred  A.  Spinks, 
of  the  County  of  Los  Angeles,  State  of  California,  in  consideration  of 
the  sum  of  One  Hundred  Dollars  ($100.00),  Gold  Coin  of  the  United 
States,  to  me  in  hand  paid,  receipt  whereof  is  hereby  acknowledged,  do  by 
these  presents,  sell,  assign  and  transfer  and  set  over  unto  Silas  Shock- 
ing, that  certain  agreement  of  sale  dated  the  loth  day  of  June,  1905, 
made  between  James  A.  Garfield,  as  party  of  the  first  part,  and  said 
Alfred  A.  Spinks,  as  party  of  the  second  part,  and  providing  for  the 
sale  of  Lots  Five  (5)  and  Six  (6)  of  the  West  Adams  Tract,  in  the  said 
County  of  Los  Angeles,  State  of  California,  which  said  agreement  is  re- 
corded in  the  office  of  the  County  Recorder  of  said  County  of  Los  Angeles, 
in  Book  30  of  Miscellaneous  Records,  at  page  20,  to  which  said  agreement 
and  the  said  record  thereof  reference  is  hereby  made  as  a  part  hereof; 
To  HAVE  AND  TO  HOLD  the  same  and  the  lands  therein  described  unto 
the  said  Silas  Shocking,  his  heirs  and  assigns,  for  his  and  their 
use  and  benefit,  forever;  subject,  nevertheless,  to  the  covenants,  condi- 
tions and  payments  therein  also  mentioned ;  which  payments  and  cove- 
nants the  said  Silas  Shocking  also  hereby  assumes  and  agrees  to 


REAL,  ESTATE  AT  A  PROFIT  45 

fully  satisfy  and  discharge,  and  to  keep  and  save  harmless  the  said 
Alfred  A.  Spinks  of  and  from  all  personal  liability  therefor.  And 
the  said  Alfred  A.  Spinks  hereby  fully  authorizes  and  empowers  the  said 
Silas  Shocking,  upon  his  performance  of  the  said  covenants  and  con- 
ditions, to  demand  and  receive  of  the  said  James  A.  Garfield  the  deed 
covenanted  to  be  given  in  said  contract,  in  the  same  manner,  to  all  in- 
tents and  purposes,  as  the  said  Alfred  A.  Spinks  might  or  could  do  were 
these  presents  not  executed. 

In  Witness  Whereof,  said  Alfred  A.  Spinks  has  hereunto  set  his 
hand  and  seal  this  23rd  day  of  August,  1905. 

(Signed)  ALFRED  A.  SPINKS.     (Seal) 
(Acknowledgment.) 

FORM   NO.  9— ASSIGNMENT  TO  BE  ANNEXED  TO  INSTRUMENT. 

KNOW  ALL  MEN  BY  THESE  PRESENTS,  that  I,  Alfred  A.  Spinks, 
named  in  the  annexed  instrument,  in  consideration  of  the  sum  of  One 
Hundred  and  Fifty  Dollars,  Gold  Coin  of  the  United  States,  to  me  in 
hand  paid  by  Silas  Shocking,  of  the  City  and  County  of  San  Fran- 
cisco, and  State  of  California,  the  receipt  whereof  is  hereby  acknowledged, 
do,  by  these  presents,  sell,  transfer,  assign  and  set  over  to  the  said  Silas 
Chocking,  his  heirs  and  assigns,  the  said  instrument,  and  all  my  right, 
title  and  interest  in  and  to  the  same,  authorizing  him  in  my  name,  or 
otherwise,  but  at  his  own  cost,  charge  and  expense,  to  enforce  the  same 
according  to  the  tenor  thereof,  and  to  take  all  legal  measures  which  may 
be  proper  or  necessary  for  the  complete  recovery  and  enjoyment  of  the 
assigned  premises. 

In  Witness  Whereof,  I  have  hereunto  set  my  hand  and  seal  this 
i6th  day  of  December,  in  the  year  of  our  Lord,  one  thousand  nine  hundred 

and  five. 

ALFRED  A.  SPINKS.     (Seal) 
(Acknowledgment.) 

FORM   NO.    10— ASSIGNMENT   INDORSED  UPON   AN   INSTRU- 
MENT. 

FOR  VALUE  RECEIVED,  I  do  hereby  sell,  assign,  transfer  and  set  over 
to  Silas  Shocking,  his  heirs  and  assigns  forever,  all  my  right,  title, 
and  interest,  in,  to,  and  under  the  within  instrument,  and  to  the  lands 
therein  described. 

Witness  my  hand  and  seal  this  fifth  day  of  May,  A.  D.  1905. 

ALFRED  A.  SPINKS.     (Seal.) 
(Acknowledgment.) 

FORM  NO.  ii— TITLE  BOND  FOR  MINING  PROPERTY. 

KNOW  ALL  MEN  BY  THESE  PRESENTS,  that  John  Collins  and 
Patrick  Murphey,  of  the  County  of  Lake,  and  State  of  Colorado, 
are  held  and  firmly  bound  unto  T.  S.  Eaton,  his  heirs,  executors,  adminis- 
trators and  assigns,  in  the  penal  sum  of  Five  Thousand  Dollars,  lawful 
money  of  the  United  States,  for  the  payment  of  which  sum,  well  and  truly 
to  be  made,  we  hereby  bind  ourselves,  our  heirs,  executors  and  administra- 


46  HOW    TO    BUY    AND 

tors,  firmly  by  these  presents.  Witness  our  hands  and  seals  this  3Oth  day 
of  January,  A.  D.  1905.  THE  CONDITION  of  the  above  obligation  is 
such,  That  if  the  above  bounden  obligors,  Collins  and  Murphey,  shall,  on 
the  twentieth  day  of  March,  A.  D.  one  thousand  nine  hundred  and  five, 
make,  execute,  and  deliver  unto  the  said  T.  S.  Eaton,  or  to  his  assigns 
(provided  that  the  said  Eaton  shall,  on  or  before  that  dav  have  paid  to 
the  said  obligors  the  sum  of  five  thousand  dollars,  gold  coin  of  the  United 
States  of  America,  or  shall  deposit  said  sum  to  their  credit  in  the  Banking 
House  of  First  National  Bank,  in  the  City  of  Denver,  Colorado,  the  price 
by  said  Eaton  agreed  to  be  paid  therefor),  a  good  and  sufficient  deed  for 
conveying  and  assuring  to  the  said  T.  S.  Eaton,  free  from  all  incum- 
brances,  the  following  described  property  lying,  being  and  situate  in  the 
County  of  Gilpin  and  State  of  Colorado,  to-wit :  The  "Bully  Boy"  mine, 
located  by  said  Collins  and  Murphey  January  2,  1905,  as  per  loca- 
tion notice  recorded  in  the  office  of  the  County  Recorder  of  the  County  of 
Gilpin,  in  Book  10  of  Mining  Claims,  at  page  384,  in  Moctezuma  Mining 
District,  then  this  obligation  to  be  void;  otherwise  to  remain  in  full  force 
and  virtue. 

JOHN   COLLINS,  (Seal) 

PATRICK    MURPHEY,      (Seal) 
Signed,  Sealed  and  Delivered  in  Presence  of: 
DENNIS  FEARON, 
THEO.  EINSTEIN. 

FORM  NO.  12.— COPY  OF  RESOLUTION  OF  BOARD  OF  DIREC- 
TORS OF  CORPORATION,  AUTHORIZING  THE  GIVING 
OF  AN  OPTION. 

RESOLVED,  That  the  Blue  Bird  Oil  Company,  a  corporation,  give  Ber- 
nard Baker  &  Co.,  real  estate  brokers,  the  exclusive  option  and  privilege 
of  purchasing  from  this  corporation,  at  any  time  on  or  before  ninety  days 
from  the  21  st  day  of  January,  1905,  all  that  certain  lot,  niece  or  parcel  of 
land,  situate,  lying  and  being  in  the  County  of  Riverside,  State  of  Califor- 
nia, and  bounded  and  particularly  described  as  follows,  to-wit : 

(Description.) 

For  the  sum  of  Five  Thousand  Dollars  ($5,000),  in  United  States  gold 
coin,  payable  as  follows:  $500,  upon  the  execution  and  delivery  of  said 
written  option  agreement,  which  said  sum  shall  constitute  a  deposit  and 
part  payment  in  case  said  option  shall  be  exercised  within  the  time  lim- 
ited as  aforesaid,  and  the  remainder,  to-wit:  the  sum  of  $4,500,  to  be  paid 
upon  the  exercise  of  said  option ;  said  option  agreement  to  provide  that 
said  deposit  of  $500  shall  be  forfeited  to  this  corporation  as  liquidated  and 
stipulated  damages  in  the  event  said  option  shall  not  be  exercised  as  here- 
finabove  mentioned;  this  corporation,  in  event  of  consummation  of  sale, 
to  furnish  the  purchaser  an  unlimited  certificate  of  title,  to  be  issued  by  the 
Riverside  Abstract  Company,  showing  said  premises  free  and  clear  of  all 
incumbrances.  And  the  President  and  the  Secretary  of  this  corporation 


REAL  ESTATE  AT  A  PROFIT  47 

be,  and  they  are  hereby,  authorized  and  directed  to  execute  and  deliver,  in 
the  name,  on  behalf  and  under  the  corporate  seal  of  this  corporation,  an 
option  agreement  as  above  provided,  and  in  the  event  of  consummation  of 
sale,  said  President  and  Secretary  are  also  likewise  authorized  and  directed 
to  execute  and  deliver  to  the  purchaser  a  deed,  grant,  bargain  and  sale  in 
form,  of  said  above  described  property,  and  to  execute  all  papers  and  per- 
form any  and  all  acts  which  are  or  may  be  necessary  to  effectuate  the  pur- 
poses of  this  resolution. 

(Corporate  Seal.)       (Certificate  of  Secretary:  See  Form  No.  18.) 


48  HOW    TO   BUY    AND   SELL 


CHAPTER  V. 

DEEDS. 

Deed  Defined — Essential  Requisites  of — Orderly  Parts  of — The  Several  Kinds 
of  Deeds — Two  Estates  in  One  Parcel  of  Land;  Deeds  Conveying  Same — Control 
of  Husband — Corporation  Deeds — Ratification  by  Stockholders  of  Mining  Ground — 
Acknowledgment:  Particulars  as  to  Taking  and  Certifying  Same — Delivery:  Abso- 
lute and  in  Escrow — Recording:  Object  of  the  Recording  Laws — What  is  Necessary 
to  Entitle  an  Instrument  to  Record — Unrecorded  Instrument  Void,  When — Who 
is  a  purchaser  in  Good  Faith — Analysis  of  a  Deed,  Showing  the  Several  Orderly  Parts, 
With  Examples  of  the  Apt  Words  and  Phrases  Ordinarily  Employed  in  Each  Part,  Ex- 
hibiting to  the  Reader  of  What  the  Several  Parts  Consist,  and  Enabling  Him  To  See 
Them  All,  Lying  Together,  in  Minute  Detail,  According  to  Some  System — Com- 
ments on  the  Foregoing  Analyzed  Deed,  and  Explaining  Fully  as  to  Date,  Parties, 
Recitals,  Consideration,  Operative  Words,  the  Use  of  the  Word  "Grant,"  Descrip- 
tion, the  Three  means  of  Ascertaining  the  Quantity  of  Land — Reservation,  Haben- 
dum,  Conditions,  Covenants,  Personal,  and  Running  With  the  Land — Testatum  Clause 
— Signature,  Seal  and  Witnesses, 

Note. — See  also  chapter  on  "Making  a  Loan,"  wherein  is  given  Forms  of 
Deed  of  Trust,  Mortgage,  Etc.,  and  Chapter  on  "Miscellaneous  Matters  Affecting 
Real  Estate." 

Sec.  80.  A  Deed  is  an  executed  contract  in  writing.  It 
differs  from  some  executed  contracts  in  this  respect,  that  it  is 
signed  ordinarily  by  only  one  of  the  parties.  A  deed,  by  the 
owner  of  land,  duly  signed  and  acknowledged  by  him  and  de- 
livered to  the  grantee,  conveying  land  to  the  latter  in  fee 
simple,  is  one  of  the  most  solemn  of  civil  acts. 

Sec.  81.  The  essential  requisites  or  circumstances  attend- 
ing the  execution  of  a  deed,  are : 

(i.)     The  writing  of  the  deed  on  paper  or  parchment. 

(2.)     Parties  competent  to  make  a  contract. 

(3.)     Sufficient  consideration. 

(4.)  A  description  of  the  land  conveyed  sufficient  to 
identify  it. 

(5.)     The  signing  of  the  deed. 

(6.)  The  delivery  of  the  deed  by  the  grantor  to  the 
grantee. 

Sec.  82.     Tlhe  Orderly  Parts  of  a  deed  are : 

(i.)  The  Premises — The  date;  the  names  of  the  parties, 
the  grantor  and  the  grantee,  and  their  places  of  residence; 
the  recitals,  if  any;  the  consideration,  and  the  receipt  thereof. 

(2.)  The  granting  clause,  to  indicate  the  estate  trans- 
ferred. 

(3.)     The  description  of  the  land. 


REAL  ESTATE  AT  A  PROFIT  49 

(4.)  The  exceptions,  if  any.  (This  clause  is  known  as 
the  "Reddendum.")  ' 

(5.)  The  Habendum,  or  clause  beginning  "To  Have  and 
to  Hold." 

(6.)     Covenants  of  warranty  and  the  like. 

(7.)  Conclusion — Testatum  clause;  signature;  acknowl- 
edgment. 

Sec.  83.  The  several  kinds  of  deeds  take  their  designa- 
tions or  titles  from  the  quantity  of  the  estate  conveyed,  or  from 
the  capacity  in  which  the  party  acts  who  executes  them,  and 
are  known  as  Grant,  Bargain  and  Sale  Deeds,  Quitclaim 
Deeds,  Warranty  Deeds,  Deeds  of  Gift,  Sheriff's  Deeds,  Tax 
Collector's  Deeds,  Guardian's  Deeds,  Administrator's  Deeds, 
Corporation  Deeds,  etc.  Deeds  executed  by  Sheriffs,  Tax  Col- 
lectors, Guardians,  etc.,  are  made  under  order  of  court  or  in 
pursuance  of  law.  The  correct  forms  of  deeds  for  the  several 
States  may  be  obtained  from  stationers. 

Sec.  84.  A  Quitclaim  Deed  is  used  to  dispose  of  any  ap- 
parent interest  which  one  may  have  in  real  estate,  in  order  to 
perfect  the  title  in  the  grantee,  or  present  owner. 

Sec.  85.  There  may  be  two  estates  (Sec.  9)  in  the  same 
parcel  of  land,  each  owned  by  different  individuals  or  corpora- 
tions, as,  for  instance,  a  mineral  estate  and  an  agricultural 
estate.  See  Form  No.  18  where  the  surface  is  conveyed  and 
the  minerals  retained,  and  Form  No.  19  where  the  minerals 
(oil,  etc.)  are  conveyed. 

Sec.  86.  The  subject  of  Deeds  will  be  considered  under 
the  successive  steps  of  execution,  acknowledgment,  delivery 
and  recording.  For  other  particulars,  not  here  given,  see 
"Analysis  of  a  Deed,"  and  comments  thereon,  Sees.  91  and  92. 

Sec.  87.     Execution. 

(a.)  The  husband  has  the  management  and  control  of  the 
community  property  (defined  Chapter  i,  Sec.  14)  with  as  abso- 
lute power  of  disposition,  other  than  testamentary,  as  he 
would  have  of  his  separate  property ;  but  he  cannot  make  a  gift 
of  it,  or  convey  it  without  a  valuable  consideration,  unless  the 
wife  consents  in  writing  thereto.  For  this  reason,  the  practice 
is  to  have  the  wife  join  with  the  husband  as  a  party  to,  and 
in  the  execution  of,  all  deeds  executed  by  them  during  mar- 


SO  HOW    TO    BUY    AND 

riage.  The  separate  property  of  the  husband  or  wife  is  that 
owned  by  either  before  marriage  and  that  acquired  afterward 
by  either,  by  gift,  bequest,  devise  or  descent.  The  wife  may, 
without  the  consent  of  her  husband,  convey  her  separate  prop- 
erty. Such  is  the  rule  in  California. 

(b.)  A  deed  executed  in  the  name  of  a  corporation,  must 
be  authorized  by  its  Board  of  Directors.  The  powers  of  a  cor- 
poration must  be  exercised  and  its  property  controlled  by  its 
Board  of  Directors,  and  a  decision  of  a  majority  of  the  Board 
made,  when  duly  assembled,  is  valid  as  a  corporate  act.  The 
Directors,  when  not  acting  as  a  Board,  have  not  the  necessary 
power.  The  corporate  seal  should  be  affixed  to  a  deed,  or  any 
other  instrument  relating  to  real  estate,  executed  by  the  offi- 
cers of  a  corporation.  Unless  the  statutes  require,  it  is  not  es- 
sential to  the  validity  of  a  deed  by  a  corporation  that  the  deed 
contain  a  recital  of  the  authority  to  execute  the  deed.  The 
evidence  of  the  authority  of  the  officers  of  a  corporation  to 
execute  a  deed  is  contained  in  the  resolution  of  the  Board  of 
Directors.  In  California,  a  certificate  signed  by  the  Secretary 
of  a  corporation,  with  the  corporate  seal  affixed,  is  prima  facie 
evidence  of  the  facts  therein  recited.  Among  conveyancers, 
the  best  practice  is  to  prefix  or  affix  a  certified  copy  of  the 
resolution  to  the  deed  to  which  it  relates,  and  the  two  then  go 
of  record  together,  thus  making  the  record  more  complete. 
(See  Form  No.  18.)  Where  a  corporation  has  a  number  of  deeds 
to  be  executed  at  various  dates,  a  general  resolution  (See 
Form  No.  20)  may  be  adopted,  and  when  certified,  acknowl- 
edged and  recorded,  it  has  the  same  effect  as  would  a  corporate 
power  of  attorney. 

(c.)  In  California,  it  is  not  lawful  for  the  Directors  of 
any  mining  corporation — including  oil  mining  companies — to 
sell,  lease,  mortgage  or  otherwise  dispose  of  the  whole  or  any 
part  of  the  mining  ground  owned  or  held  by  such  corporation, 
nor  to  purchase  or  obtain  in  any  way,  except  by  location,  any 
additional  mining  ground,  unless  same  be  ratified  by  the 
holders  of  at  least  two-thirds  of  the  stock  then  outstanding. 
Such  ratification  may  be  made  as  indicated  in  Form  No.  19, 
and  attached  to  the  instrument  acquiring  or  disposing  of  the 
mining  ground. 

Sec.  88.     Acknowledgment. 


REAL  ESTATE  AT  A  PROFIT  51 

(a.)  Acknowledgment  is  the  only  mode  provided  by  law 
for  authenticating  the  acts  of  the  parties  to  a  transfer,  so  as  to 
entitle  the  instrument  of  conveyance  to  record,  and  to  make 
such  conveyance  notice  to  subsequent  purchasers  and  encum- 
brancers, and  to  entitle  it  to  be  read  in  evidence  without 
further  proof. 

(b.)  An  acknowledgment  is  made  by  the  party  executing 
a  deed  or  other  instrument  going  before  a  notary  public  or 
other  officer  authorized  to  take  acknowledgments  of  real  prop- 
erty, and  presenting  the  signed  instrument  to  him,  and  saying 
to  him :  "I  desire  to  acknowledge  this  instrument ;  this  is  my 
signature,"  or  "I  acknowledge  this  to  be  my  signature." 

(c.)  The  Civil  Code  of  California  (Sec.  1185)  provides 
that  "The  acknowledgment  of  an  instrument  must  not  be 
taken,  unless  the  officer  taking  it  knows,  or  has  satisfactory  evi- 
dence, on  the  oath  or  affirmation  of  a  credible  witness,  that 
the  person  making  such  acknowledgment  is  the  individual 
who  is  described  in  and  who  executed  the  instrument;  or  if 
executed  by  a  corporation,  that  the  person  making  such  ac- 
knowledgment is  the  person  who  executed  it  on  behalf  of  such 
corporation."  "The  notary  is  expressly  forbidden  to  take  an 
acknowledgment,"  says  the  Supreme  Court  of  California,  in 
commenting  on  this  Section,  "unless  he  knows  that  the  person 
making  the  acknowledgment  is  the  person  described  in  the  in- 
strument. If  he  did  not  know  this,  it  should  have  been  proved 
by  the  oath  of  a  credible  witness,  whose  name  must  be  stated. 
It  is  not  enough  that  the  person  be  introduced  to  the  notary 
by  a  responsible  person.  To  take  an  acknowledgment  upon 
such  introduction,  without  the  oath,  is  negligence  sufficient 
to  render  the  notary  liable  in  case  the  certificate  turns  out  to 
be  untrue." 

(d.)  The  officer  taking  the  acknowledgment  of  an  instru- 
ment must  indorse  thereon,  or  attach  thereto,  a  certificate, 
signed  by  the  officer,  and  having  his  official  seal  affixed,  and 
certifying  that  the  person  making  the  acknowledgment  is  the 
person  described  in  the  instrument.  The  laws  of  each  State 
prescribe  the  form  of  the  certificate  of  acknowledgment  to  be 
used,  and  where  the  instrument  affecting  real  property  situate 
in  one  State,  is  acknowledged  in  another  State,  the  certificate 
of  acknowledgment  should  conform  to  the  laws  of  the  State 


52  HOW    TO    BUY    AND 

where  the  property  is  situate.  Moreover,  in  such  case,  the 
party  executing  the  instrument,  should  obtain  from  the  County 
Clerk  of  the  County  in  which  the  officer  taking  the  acknowl- 
edgment is  acting,  a  certificate  to  the  effect  that  the  officer 
certifying  the  instrument  is  authorized  so  to  do,  and  that  his 
signature  is  true  and  genuine,  such  certificate  of  the  County 
Clerk  to  be  also  attached  to  the  instrument. 

(e.)  In  California,  the  certificate  of  acknowledgment  of  a 
justice  of  the  peace,  when  used  in  any  county  other  than  that 
in  which  he  resides,  must  be  .accompanied  by  a  similar  certifi- 
cate of  the  Clerk  of  the  County  in  which  the  justice  resides. 

(f.)  A  notary  or  other  officer  who  is  related  to  the 
parties  or  who  is  interested  in  the  property  described  in  the 
instrument,  is  disqualified  from  taking  such  acknowledgments. 
A  notary  who  is  a  stockholder  in  a  corporation  is  disqualified 
from  taking  the  acknowledgments  of  the  officers  of  the  cor- 
poration. 

(g.)  If  a  purchaser  neglects  to  have  his  deed  properly 
acknowledged  and  recorded,  he  will  be  liable  to  have  his  title 
divested  by  a  subsequent  conveyance  to  an  innocent  party,  and 
to  the  further  inconvenience  of  being  compelled  to  prove  the 
execution  of  his  deed  when  called  upon  to  put  it  in  evidence. 

(h.)  Some  of  the  forms  of  acknowledgment  in  use  in 
California  are  given  in  Forms  Nos.  22  to  26.  For  forms 
of  acknowledgments  for  all  the  States,  see  the  "American  Not- 
ary Manual."  (See  advertising  pages  of  this  book.) 

Sec.  89.     Delivery. 

(a.)  A  deed  takes  effect,  so  as  to  vest  the  interest  in- 
tended to  be  conveyed,  only  upon  its  delivery  by  the  grantor. 
A  deed,  duly  executed,  and  in  the  possession  of  the  grantee, 
is  presumed  to  have  been  delivered  at  its  date.  Acceptance 
by  the  grantee  is  necessary  to  complete  the  delivery.  Accept- 
ance will  always  be  presumed  if  the  deed  be  found  in  the 
grantee's  possession.  The  grantor  must  divest  himself  of 
all  dominion  over  the  deed.  The  delivery  should  be  made  to 
the  grantee  himself  or  to  his  agent.  The  deed  should  be  read, 
and  read  correctly,  at  the  time  of  delivery,  if  either  party  re- 
quires it.  No  particular  form  of  delivery  is  necessary;  any 
act  is  sufficient  which  indicates  the  intention  of  the  grantor 
to  put  the  deed  in  the  possession  of  the  grantee. 


REAL  ESTATE  AT  A  PROFIT  53 

(b.)  A  deed  cannot  be  delivered  to  the  grantee  condition- 
ally. Delivery  to  him  or  to  his  agent  is  necessarily  absolute, 
and  thereupon  the  instrument  takes  effect,  discharged  of  any 
condition  on  which  the  delivery  was  made. 

(c.)  A  deed  may  be  deposited  by  the  grantor  with  a 
third  person  to  be  delivered  on  the  performance  of  a  condition, 
such  as  the  payment  of  a  sum  of  money  or  the  like,  and  on  de- 
livery by  the  depositary  it  will  take  effect.  While  in  the  pos- 
session of  the  third  person  and  subject  to  the  condition,  such 
delivery  is  called  an  escrow.  The  depositary  is  the  agent  of 
both  the  parties  to  the  escrow.  Written  instructions  are  de- 
livered to  the  depositary,  specifying  the  condition  and  the 
time  within  which  it  is  to  be  performed,  and  signed  by  both 
parties  or  by  one  of  them.  (See  Escrows.) 

(d.)  Where  the  owner  of  land  desires  to  convey  the 
same  to  a  grantee,  and  not  have  the  deed  take  effect  until  after 
his  death,  he  may  do  so  in  two  ways:  (i)  by  a  deed,  in  which 
he  will  reserve  to  himself  a  life  estate  in  the  premises,  and 
such  deed  he  may  deliver  directly  to  the  grantee ;  or  (2)  he 
may  convey  the  premises  to  a  certain  grantee,  by  deed,  which 
deed  he  will  place  in  the  custody  of  a  third  person,  with  in- 
structions to  pass  it  on  to  the  grantee  named  in  the  deed  after 
the  death  of  the  grantor.  Such  a  delivery  is  irrevocable,  and 
the  grantor  cannot  reach  out  and  take  the  deed  at  his  pleasure, 
as,  by  delivering  the  deed  to  the  depositary,  he  constituted  the 
latter  a  trustee  for  the  grantee,  and  created  in  himself  a  ten- 
ancy for  life  in  the  premises.  Such  a  delivery  will  take  effect 
upon  the  happening  of  the  contingency,  and  will  relate  back 
so  as  to  divest  the  title  of  the  grantor  from,  the  first  delivery, 
and  the  depositary  has  no  right  to  return  the  deed  to  the 
grantor. 

Sec.  90.     Recordation. 

(a.)  To  entitle  an  instrument  to  record,  it  must  be  ac- 
knowledged and  certified,  and  such  instruments,  in  California, 
must  be  recorded  in  the  office  of  the  County  Recorder  of  the 
county  in  which  the  real  property  affected  thereby  is  situate. 
Deeds  are  recorded  in  one  set  of  books,  and  mortgages  in 
another. 

(b.)  An  instrument,  duly  acknowledged  and  certified, 
is  deemed  to  be  recorded  from  the  time  that  it  is  deposited  in 


54  HOW    TO    BUY   AND 

the  recorder's  office,  with  the  proper  officer,  for  record.  The 
recorder  must  indorse  on  the  instrument  the  amount  of  his  fee 
for  recording  it. 

(c.)  Every  conveyance  of  real  property,  acknowledged, 
certified  and  recorded,  as  prescribed  by  law,  is,  from  the  time 
it  is  filed  with  the  recorder  for  record,  constructive  notice  of 
its  contents  to  subsequent  purchasers  and  mortgagees. 

(d.)  Every  conveyance,  except  a  lease  for  a  term  not  ex- 
ceeding one  year,  not  placed  of  record  is  void  as  against  any 
subsequent  purchaser  or  mortgagee  of  the  same  property,  or 
any  part  thereof,  in  good  faith  and  for  a  valuable  consideration, 
whose  conveyance  is  first  duly  recorded. 

(e.)  The  object  of  the  recording  laws  is  to  impart  notice 
and  to  prevent  fraud.  A  deed  which  is  neither  acknowledged 
nor  recorded,  or  which  is  acknowledged  but  not  recorded,  is 
good  as  between  the  parties  to  it.  If  the  grantor  of  such  un- 
recorded deed  should  convey  the  same  property  to  a  bona  fide 
purchaser,  the  latter  purchasing  in  good  faith  and  for  a  valua- 
ble consideration,  and  such  bona  fide  purchaser  should  place 
his  deed  of  record,  the  holder  of  the  prior  unrecorded  deed 
would  lose  his  title.  The  policy  of  the  law  is  to  cause  pur- 
chasers to  rely  upon  the  records.  Anyone  who  acts  with  the 
knowledge  of  any  unrecorded  deed  or  mortgage  cannot  take 
advantage  of  the  fact  of  its  not  being  recorded.  A  purchaser 
in  good  faith  is  a  person  who  has  no  knowledge,  at  the  time 
of  his  purchase,  that  his  grantor  had,  before  that  time,  made 
a  conveyance  of  the  same  property  to  another  person  who 
holds  an  unrecorded  deed.  To  entitle  such  purchaser  to  pro- 
tection, he  must  aver  and  prove  the  possession  of  his  grantor, 
the  purchase  of  the  premises,  the  payment  of  the  purchase 
money  in  good  faith  and  without  notice,  actual  or  constructive, 
down  to  the  very  moment  of  payment. 

SEC.  91— ANALYSIS  OF  A  DEED, 

showing  the  several  orderly  parts,  with  examples  of  the  apt  words  and 
phrases  ordinarily  employed  in  each  part,  exhibiting  to  the  reader  of 
what  the  several  parts  consist,  and  enabling  him  to  "see  them  all,  lying 
together,  in  minute  detail,  according  to  some  system."  It  should  be 
borne  in  mind  that  all  the  parts  here  introduced  are  rarely,  perhaps  never, 
employed  in  any  one  deed. 


REAL  ESTATE  AT  A  PROFIT  55 

FORM  NO.  13.— AN  ANALYZED  DEED. 

(a)  Date. 

THIS  INDENTURE,  made  the  loth  aav  of  January,  in  the  year  of  our 
Lord,  one  thousand  nine  hundred  and  five, 

(b)  Parties. 

Between  James  W.  Robertson,  an  unmarried  man,  of  the  Town  of  Co- 
vina,  County  of  Los  Angeles,  State  of  California,  the  party  of  the  first 
part,  and  Joseph  D.  Wiggins,  of  said  County  and  State,  the  party  of  the 
second  part ; 

(c)  Recital 

WHEREAS,  In  a  certain  deed  of  conveyance,  dated  the  loth  day  of  De- 
cember, 1004,  made  by  and  between  the  parties  hereto,  and  recorded  in  the 
office  of  the  County  Recorder  of  the  County  of  Los  Angeles,  in  Book  1304 
of  Deeds,  at  page  326,  the  lands  hereinafter  mentioned  are  described  las 
being  in  Township  One  North,  Range  Two  West,  instead  of  in  Range 
Twenty-six  (26)  West,  as  hereinafter  set  forth ;  and 

WHEREAS,  To  prevent  difficulties  hereafter,  it  is  expedient  to  correct 
said  error: 

Now,  THEREFORE,  This  Indenture 

(d)  Consideration. 

WITNESSETH  :  That  the  said  party  of  the  first  part,  for  and  in  con- 
sideration of  the  sum  of  Four  Hundred  Dollars  ($400),  gold  coin  of  the 
United  States  of  America,  to  him  in  hand  paid  by  said  party  of  the  sec- 
ond part,  the  receipt  whereof  is  hereby  acknowledged, 

(e)  Operative  Words. 

does  by  these  presents  grant,  bargain  and  sell,  convey  and  confirm  unto 
the  said  party  of  the  second  part,  and  to  his  heirs  and  assigns  forever, 

(f)  Description. 

all  that  certain  lot,  piece  or  parcel,  of  land  situate,  lying  and  being  in  the 
County  of  Los  Angeles,  State  of  California,  and  bounded  and  particularly 
described  as  follows,  to-wit: 

The  Northwest  one-quarter  of  the  Southeast  one-quarter  (N.  W.  }4 
of  S.  E.  J4)  of  Section  Eighteen  (18),  Township  One  (i)  North  of  Range 
Twenty-six  (26),  West  of  San  Bernardino  Base  and  Meridian,  containing 
forty  (40)  acres,  according  to  the  Government  survey  thereof,  be  the 
same  more  or  less : 

(g)  Reservation  (called  the  "Reddendum"). 

EXCEPTING  from  the  operation  of  this  conveyance,  and  reserving  unto 
said  party  of  the  first  part,  his  heirs  and  assigns,  out  of  the  land  herein- 
above  described  and  hereby  conveyed,  the  right,  privilege  and  easement 
of  entering  in  and  upon  so  much  of  said  land  as  may  be  necessary,  and 
therein  to  lay,  operate  and  maintain  a  pipe  line  and  pumping  plant  for  the 
purpose  of  conducting  and  transporting  water  from  a  certain  artesian 
well  near  the  northeast  corner  of  said  lands,  and  of  sunolying  said  water 
to  the  occuoants  of  other  lands  in  said  Section  18,  now  belonging  to  said 
party  of  the  first  part,  so  long  as  such  other  lands  to  be  supplied  with 


56  HOW    TO   BUY   AND    SELL 

water  as  aforesaid  shall  belong  to  said  party  of  the  first  part,  or  his  legal 
representatives. 

Together  with  all  and  singular  the  tenements,  hereditaments  and  ap- 
purtenances thereunto  belonging,  or  in  any  wise  appertaining,  and  the  re- 
version and  reversions,  remainder  and  remainders,  rents,  issues  and  profits 
thereof. 
(h)    Habendum. 

To  HAVE  AND  TO  HOLD,  all  and  singular  the  said  premises,  together 
with  the  appurtenances,  unto  the  said  party  of  the  second  part,  and  to  his 
heirs  and  assigns  forever. 
(i)     Conditions. 

(1)  This  conveyance  is  made  upon  the  EXPRESS  CONDITION  that 
the  grantee  herein  shall,  as  a  part  of  the  consideration,  assume  and  pay  on  or 
before  maturity,  a  certain  note  in  the  sum  of  $900,  dated  November  i2th, 
1003,  in  favor  of  the  Union  Bank  of  Savings,  of  Los  Angeles,  California, 
secured  by  a  mortgage  on  the  premises  hereby  conveyed,  which  said  mort- 
gage   and  the  debt  thereby  secured,  the  grantee  herein,  by  the  acceptance 
of  this  conveyance,  agrees  to  fully  pay,  satisfy  and  discharge,  and  to  keep 
and  save  harmless  the  said  grantor,  his  heirs  and  assigns,  of  and  from 
all  personal  liability  therefor,  or  in  connection  therewith,  including  defi- 
ciency judgments;  and  on  the  further  condition  that  said  grantee  shall  pay 
all    taxes   levied    or   assessed    against    said    premises    for   the   fiscal    year 
1905-06. 

(2)  This   conveyance    is    made    upon   the    FURTHER    EXPRESS 
CONDITION  that  neither  the  said  grantee,  his  heirs,  executors,  adminis- 
trators or  assigns,  nor  those  claiming  under  them,  shall  ever  manufacture, 
sell  or  dispose  of,  or  permit  the  sale,  manufacture  or  disposal  of,  spirituous 
or  intoxicating  liquors  in  any  place  of  public  resort  on  any  portion  of  the 
premises  hereinabove  described ;  and  in  case  said  condition  is  broken  by 
said  grantee,  his  heirs,  executors,  administrators,  assigns  or  legal  repre- 
sentatives, or  those  claiming  under  them,  then  and  in  that  case  the  title  to 
the  premises  hereby  conveyed  shall  immediately  revert  to  and  vest  again 
in  the  grantor  herein,  the  same  as  though  this  deed  had  never  been  ex- 
ecuted ;  and  the  said  grantee,  by  the  acceptance  of  this  deed,  hereby  accepts 
and  assents  to  and  agrees  to  keep  unbroken  the  conditions  hereinabove  set 
forth. 

(j)     Covenant  of  Seisin. 

And  the  said  party  of  the  first  part,  for  his  heirs,  executors  and  ad- 
ministrators, does  covenant,  grant  and  agree  to  and  with  the  said  party  of 
the  second  part,  his  heirs  and  assigns,  that  the  said  party  of  the  first  part, 
at  the  time  of  the  sealing  and  delivery  of  these  presents,  is  lawfully  seized 
in  fee  simple  absolute  of  and  in  all  and  singular  the  above  granted  and 
described  premises,  with  the  appurtenances; 
(k)  Covenant  of  Right  to  Convey. 

and  has  good  right,  full  power  and  lawful  authority,  to  grant,  bargain,  sell 
and  convey  the  same,  in  manner  aforesaid ; 


ESTATE  AT  A  PROFIT  57 

(I)     Covenant  Against  Grantor's  Own  Acts. 

And  said  party  of  the  first  part,  for  himself  and  his  heirs,  executors  and 
administrators,  does  hereby  covenant  and  agree  to  and  with  said  party  of 
the  second  part,  his  heirs,  executors,  administrators  and  assigns,  that  he 
has  not  made,  done,  committed,  executed  or  suffered,  any  act  or  acts,  thing 
or  things  whatsoever,  whereby  or  by  means  whereof  the  said  premises>  or 
any  part  or  parcel  thereof,  now  are,  or  at  any  time  hereafter  shall,  or  may, 
be  impeached,  charged  or  incumbered,  in  any  manner  or  way  whatsoever. 
(m)  Covenant  Against  Incumbrances. 

And  that  said  premises  now  are  free,  clear,  discharged  and  unincumbered, 
of  and  from  all  former  and  other  grants,  titles,  charges,  estates,  judgments, 
taxes,  assessments  and  incumbrances,  of  what  nature  or  kind  soever. 
(n)     Covenant  for  Quiet  Enjoyment. 

And  that  the  said  party  of  the  second  part,  his  heirs  and  assigns,  shall  and 
may,  at  all  times  hereafter,  peaceably  and  quietly  have,  hold,  use,  occupy, 
possess  and  enjoy  the  above  granted  premises,  and  every  part  and  parcel 
thereof,  with  the  appurtenances,  without  any  let,  suit,  trouble,  molestation, 
eviction  or  disturbance  of  said  party  of  *he  first  part,  his  heirs  and  assigns, 
or  of  any  other  person  or  persons  lawfully  claiming  or  to  claim  the  same. 
(o)  Covenant  That  the  Vendor  Will  Defend. 

And  the  said  party  of  the  first  part,  for  himself  and  his  heirs,  the  above- 
described  premises,  and  every  part  and  parcel  thereof,  with  the  appurte- 
nances, unto  the  said  party  of  the  second  part,  his  heirs  and  assigns,  against 
the  said  party  of  the  first  part,  and  his  heirs,  and  against  all  and  every! 
person  and  persons  whomsoever,  lawfully  claiming  or  to  claim  the  same, 
shall  and  will  warrant,  and  by  these  presents  forever  defend. 
(p)  Covenant  of  Further  Assurance. 

And  also,  that  the  said  party  of  the  first  part,  and  his  heirs,  and  all  and 
every  person  or  persons  whomsoever,  lawfully  or  equitably  deriving  any 
estate,  right,  title  or  interest,  of,  in  or  to  the  hereinabove  granted  prem- 
ises, by,  from,  under  or  in  trust  for  him,  shall  and  will  at  any  time  or  times 
hereafter,  upon  the  reasonable  request  and  at  the  proper  costs  and  charges 
in  the  law,  of  the  said  party  of  the  second  part,  his  heirs  and  assigns,  make, 
do  and  execute,  or  cause  to  be  made,  done,  and  executed,  all  and  every  such 
further  and  other  lawful  and  reasonable  acts,  conveyances  and  assurances 
in  the  law,  for  the  better  and  more  effectually  vesting  and  confirming  the 
premises  hereby  granted,  or  so  intended  to  be,  in  and  to  the  said  party  of 
the  second  part,  his  heirs  and  assigns  forever,  as  by  the  said  party  of  the 
second  part,  his  heirs  or  assigns,  or  his  or  their  counsel  learned  in  the  law, 
shall  be  reasonably  advised  or  required. 
(q)  Testatum  Clause. 

IN  WITNESS  WHEREOF,  the  said  party  of  the  first  part  has  hereunto 
set  his  hand  and  seal,  the  day  and  year  first  above  written. 
(r)    Signature,  Seal  and  Witnesses. 

JAMES  W.  ROBERTSON.     (Seal) 

Signed,  Sealed  and  Delivered  in  Presence  of 
JOHN  JONES, 
B.  W.  LEE. 
(s)     Acknowledgment. 


58  HOW  TO  BUY  AND  SKU, 

SEC  92— COMMENTS  ON  THE  FOREGOING  FORM. 

The  following  letters  which  are  in  parenthesis  have  reference  to  sec- 
tions of  the  foregoing  form  of  deed  lettered  in  like  manner : 

(a)  Date.    It  is  customary  to  date  a  deed  at  the  beginning  of  the 
instrument.     The  deed  does  not  take  effect,  however,  until  the  time  of  its 
delivery,  which  is  supposed  to  coincide  with  the  date  of  the  deed. 

(b)  Parties,     (i)  Any  person,  either  natural  or  artificial  (see  Chap- 
ter i,  Sec.  12)  capable  of  making  a  contract,  may  make  a  deed.     The  party 
making  the  deed  is  called  the  grantor,  and  in  the  deed  is  referred  to  »as 
the  party  of  the  first  part,  and  the  party  receiving  the  deed  is  called  the 
grantee,  and  in  the  deed  is  referred  to  as  the  party  of  the  second  part. 

(2)  If  the  grantor  is  married,  his  wife  should  join  in  the  deed.     If 
the  property  is  community  property,  and  stands  in  the  name  of  the  wife, 
the  husband  should  join  in  the  deed  as  a  party  thereto. 

(3)  Any  person,  male  or  female,  in  whom  the  title  to  real  estate  is 
vested,  and  whose  name  is  afterwards  changed,  should,  in  any  conveyance 
of  such  property,  set  forth  the  name  in  which  it  was  acquired  as  well  as 
that  by  which  it  is  conveyed. 

(4)  The  deed  of  an  infant,  that  is,  a  person  under  legal  age,  is  not 
void  but  voidable.     Such  deeds  are  generally  made  by  the  guardian  of  the 
infant  upon  order  of  Court. 

(5)  A  deed  by  an  Indian  to  a  white  person  passes  no  title.     Such 
a  conveyance  is  contrary  to  the  policy  of  the  Spanish,  Mexican  and  Ameri- 
can law. 

(6)  Description  of  Parties.     Husband  and  Wife.    "By  and  between 
Henry  Hudson  and  Sarah  Hudson,  his  wife,  of  the  County  of  Los  Angeles, 
State  of  California,  the  parties  of  the  first  part,"  etc. 

Wife  and  Husband.  "Between  Sarah  Hudson  and  Henry  Hudson,  her 
husband,  of  the  County  of,"  etc. 

Co-Partners.  "Between  Henry  Hudson  and  James  Wilson,  doing 
business  under  the  firm  name  and  style  of  Hudson  &  Wilson,  of  the  County 
of,"  etc. 

Corporation.  "Between  Golden  Rod  Mercantile  Company,  a  corpora- 
tion, duly  organized  and  existing  under  the  laws  of  the  State  of  California, 
and  having  its  principal  place  of  business  at  Los  Angeles,  County  of  Los 
Angeles,  State  of  California,  the  party  of  the  first  part." 

(7)  The  setting  forth  in  the  deed  of  the  places  of  residence  is  for 
the  purpose  of  more  clearly  identifying  the  parties. 

(c)  Recitals  in  a  deed  or  other  instrument  are  inserted  to  explain 
why  the  deed  was  made,  or  to  set  forth  the  pre-requisite  steps  and  proceed- 
ings taken  by  or  on  behalf  of  the  grantor,  as,  that  he  was  acting  under  order 
of  Court,  etc. 

(d)  The  Consideration  is  the  inducement  which  moves  the  grantor 
to  make  the  conveyance.     It  may  be  good  or  valuable.     A  good  considera- 
tion is  blood  relationship  or  affection.    A  valuable  consideration  is  money 
or  that  which  in  law  is  ratable  as  money,  as  shares  of  stock,  other  lands, 
etc.    Love  and  affection  is  a  sufficient  consideration  from  a  husband  to  his 


REAL  ESTATE  AT  A  PROFIT  59 

wife.  Courts  of  equity  will  enforce  such  a  deed,  where  it  is  for  the  benefit 
of  the  wife  and  no  rights  of  creditors  intervene.  It  is  not  necessary  to 
set  forth  the  full  or  exact  consideration  in  the  deed,  and  oftentimes  is  not 
advisable  to  do  so.  A  nominal  consideration,  such  as  "One  dollar,"  or 
"Ten  dollars,"  is  sufficient.  Where  the  full  consideration  is  given,  a  sub- 
sequent intending  purchaser,  by  referring  to  the  records,  might  obtain  in- 
formation which  would  defeat  a  sale. 

(e)  Operative  Words.     The  rule  is  that  everything  essential  to  the 
beneficial  use  and  enjoyment  of  the  property  designated  is  to  be  construed 
as  passing  to  the  grantee,  in  the  absence  of  language  to  the  contrary,  indi- 
cating a  different  intention  on  the  part  of  the  grantor.     The  kind  of  title 
conveyed  is  indicated  in  this  part,  and  deeds  are  distinguished  by  the  words 
used,  as  "grant,  bargain  and  sale,"  or  "quit-claim,"  etc.     The  duration  of 
the  estate  conveyed  is  limited  in  the  Habendum  clause. 

In  California  the  use  of  the  word  "grant"  in  any  conveyance  by  which 
an  estate  of  fee  simple  or  inheritance  is  to  be  passed,  implies  on  the  part 
of  the  grantor,  for  himself  and  his  heirs,  to  the  grantee,  unless  restricted 
by  express  terms,  the  making  of  the  following  covenants,  which  may  be 
sued  upon  as  though  they  had  been  expressly  inserted  in  the  deed,  namely: 

That  previous  to  the  time  of  the  execution  of  the  conveyance  the 
grantor  has  not  conveyed  the  same  estate,  or  any  right,  title  or  interest 
therein,  to  any  person  other  than  the  grantee ;  and  that  such  estate  is  free 
from  incumbrances  done,  committed  or  suffered  by  the  grantor  or  any  per- 
son claiming  under  him. 

(f)  Description,     (i)  The  land  conveyed  should  be  accurately  and 
clearly  described.     The  boundary  lines  are  determined  bv  physical  objects, 
such  as  monuments,  courses  and  distances,  the  number  of  acres,  etc.     All 
of  the  land  in  the  United  States^  outside  of  the  original  thirteen  colonies, 
is  supposed  to  have  been  surveyed  bv  the  general  government,  and  the 
boundaries    determined    by    fixed    monuments.     Government    surveys    are 
made  on  the  rectangular  system,  east  and  west  lines  being  run  with  the 
parallels  of  latitude  and  north  and  south  township  lines  with  the  meridians 
of  longitude.     A  tier  of  townships  running  north  and  south  is  called  a 
"range"  and  each  range  is  numbered  according  to  whether  it  is  east  or 
west  of  the  principal  meridian.     Each  township  is  also  numbered  as  it  is 
north  or  south  of  the  base  line. 

(2)  The  description  for  a  conveyance  is  ordinarily  obtained  from 
the  deed  in  the  possession  of  the  grantor,  or  from  the  certificate  of  title, 
and  it  is  safe  to  follow  either  of  these.  Where  land  is  subdivided  and  a 
portion  only  sold,  it  is  necessary,  of  course,  to  have  the  land  surveyed, 
and  boundarv  stakes  or  other  monuments  set,  and  the  land  conveyed  ac- 
cording to  the  description  furnished  by  the  surveyor.  In  case  the  transfer 
is  passed  in  escrow  through  a  title  company,  as  is  now  done  in  large  cities, 
if  there  are  any  defects  in  the  surveyor's  description,  the  same  will  be 
pointed  out  and  an  accurate  description  required  before  the  deed  will  be 
placed  of  record. 

In  the  absence  of   any   qualifying   term,    the    designation    in   a   con- 


60 


HOW  TO  BUY  AND  SELL 


veyance  of  any  physical  object  or  monument  as  a  boundary  implies  the 
middle  or  central  point  of  such  boundary,  as,  for  example,  if  the  boundary 
be  a  road  or  highway  or  a  stream,  the  thread  of  the  roau  or  stream  will  be 
intended ;  if  a  rock,  a  heap  of  stones,  or  a  tree  be  the  boundary,  the  central 
point  of  such  tree  or  rock  or  heap  of  stones  will  be  intended. 

(3)  A  township  is  36  sections,  each  a  mile 
square.  A  section  is  640  acres.  A  quarter  sec- 
tion, half  a  mile  square,  is  160  acres.  An 
eiarhth  of  a  section,  half  a  mile  long-,  north  and 
south,  and  a  quarter  of  a  mile  wide,  is  80  acres. 
A  sixteenth  of  a  section,  a  quarter  of  a  mile 
square,  is  40  acres. 

The  sections  are  all  numbered  1  to  36,  com- 
mencing- at  northea&t 
corner,  thus : 

The  sections  are 
all  divided  in  quar- 
ters, which  are  named 
by  the  cardinal  poi  nts, 
as  in  section  1.  The 


£ 

N 

NE 

W 

N 

N  E 

E 

S 

S  E 

W 

N 

N  E 

E 

N 

N   E 

W 

S 

S  E 

E 

s\ 

f 

S  E 

W 

S 

: 

S  E 

quarters  are  divided 
in  the  same  way,  as 
shown  in  the  smaller 
diagram.  The  description  of 


iNWNE 

6 

5 

4 

8 

2 

...  .-  ... 

6W  8E 

7* 

8 

9 

10 

11 

12 

• 
i 

1 

18 

17 

16 

15 

14 

13 

19 

2Q 

21 

» 

28 

•A 

80 

2D 

28    j     27 

26 

25 

81 

S2 

88 

34 

85 

36 

a  forty-acre  lot  would 
read  :  The  south  half  of  the  west  half  of  the  southwest  quarter,  or  the  north- 
east quarter  of  the  northeast  quarter,  as  the  case  mig-ht  be,  of  section  1  in  town- 
ship 24  north,  of  rang-e  7  west,  Mount  Diablo  Base  and  Meridian.  A  section  or 
quarter  section  will  sometimes  fall  short  and  sometimes  overrun  the  number  of  acres 
it  is  supposed  to  contain. 

(4)  Monuments,  courses  and  distances,  and  the  number  of  acres,  gov- 
ern as  to  the  quantity  of  land  in  the  order  named . 

Monuments  are  permanent  land  marks  specially  made  use  of  for  in- 
dicating boundaries.  They  are  usually  set  by  the  surveyor,  or  are  referred 
to  by  him  in  his  description  of  the  survey,  and  may  consist  of  stakes*, 
stones,  trees,  streams,  springs,  etc.  If  ten  acres  were  mentioned  in  a  cer- 
tain deed  as  the  number  of  acres  intended  to  be  conveyed,  and  the  quan- 
tity was  found  by  survey  to  consist  of  only  eight  acres,  the  monuments 
would  govern,  and  only  eight  acres  would  be  conveyed.  If  the  seller  truly 
points  out  the  boundaries,  the  buyer  has  no  redress,  even  if  the  seller  were 
to  overstate  the  number  of  acres ;  but  the  buyer  would  be  released  from  the 
sale  if  the  seller  were  to  make  a  fraudulent  statement  as  to  the  boundaries. 
Monuments  are,  therefore,  the  first  means  of  ascertaining  the  boundaries. 

(5)  Courses  and  distances!,  or  metes  and  bounds,  as  they  are  some- 
times called,  are  the  second  means  of  ascertaining  the  boundaries.     Courses 
and  distances  are  the  lines  followed  by  the  surveyor  in  going  around  a 
piece  of  land.     The  surveyor's  chain  is  66  feet  long,  is  divided  into  100 
links,  and  each  link  is  7.92  inches;  625  square  links  make  a  square  pole, 
16  square  poles  a  square  chain,  and  10  square  chains  an  acre.    An  acre 
contains  43,560  square  feet.     Boundaries  are  usually  expressed  in  feet,  and 
the  following  table  will  assist  in  making  an  accurate  estimate  of  land  for 
the  dimensions  given,  namely: 


ESTATE  AT  A  PROFIT 


61 


10  rods 

X 

16    rod 

s'=    1 

8     " 

X 

20 

=r= 

5     " 

X 

32       »• 

— 

4     " 

X 

40       " 

~ 

5  yards 

10      " 

X 
X 

968       " 
484   yar 

ds  = 

20      " 

X 

242 

.  = 

40      " 

X 

121         * 

80      " 

X 

60!4     ' 

— 

70      " 

X 

69«/2      ' 

OB 

220  feet 

X 

198     fe 

3t  = 

440     " 

X 

99 

110     M 

X 

369         ' 

— 

GO     M 

X 

726         * 

=1:  . 

120     " 

363 

= 

240     " 

X 

18l'/2         ' 

-^= 

200     " 

X 

1089-10' 

k      =     i 

100     " 

X 

1452-10' 

1      =     :- 

Acre. 


100  ft.  X  1089-10  ft.  =  K   AC 
25  "  X  100    "  =  .0574 
25  "  X  110    •«  =  .0631 
25  "  X  120    "  =  .0688 
25  "  X  125    "  =  .0717 
25  "  X  150    "  =  .109 

2178  square  feet    =  .05 

4356   "    "      ••=  .10 

6534   •"    "      =  .15 

8712   "    "      =  .20 

10890 

«  .25 

13068 

=  .30 

15246 

14      =  3& 

17424 

."      =.40 

19603 

44      =  .45 

21780 

"      =  .50 

32670 

=  .75 

34848   "    M      =  .80    ' 

(6)  The  third  means  of  ascertaining  the  boundaries  is  by  reference 
to  the  number  of  acres,  or  old  maps,  or  lines  of  adjoining  surveys,  etc.     If 
a  map  is  referred  to,  and  the  map  is  of  record,  the  effect,  so  far  as  the 
boundaries  are  concerned,  will  be  the  same  as  if  the  boundaries  were  in- 
serted in  the  deed. 

(7)  Maps  may  be  referred  to  by  designating  the  map  and  the  num- 
ber of  the  lot  as  laid  down  thereon. 

(g)  Reddendum  means  a  reservation  made  by  the  grantor  to  himself 
out  of  the  estate  grantedz  and  the  reservation  must  be  described  so  as  to  be 
readily  identified. 

(h)  The  Habendum.  The  duration  of  the  estate  conveyed,  and 
sometimes  the  use,  are  limited  by  this  clause.  Under  ordinary  circum- 
stances the  words  of  limitation  in  the  "grant"  or  "operative  words,"  and 
in  this  clause  should  be  the  same. 

The  phraseology  of  a  deed  conveying  the  life  estate  to  one  person, 
with  the  remainder  to  another,  would  be  as  follows : 

"To  Have  and  to  Hold  all  and  singular,  the  above  granted  premises, 
together  with  the  appurtenances,  and  every  part  thereof,  unto  the  said 
Pascal  Irwin,  and  his  assigns,  for  and  during  the  natural  life  of  the  said 
Pascal  Irwin,  and  upon  his  death,  then  unto  Alphonse  Irwin,  his  heirs  and 
assigns,  forever." 

(i)  Conditions  in  a  deed  relate  to  the  title  or  to  the  mode  of  en- 
joying  the  estate.  When  set  forth  in  the  deed,  they  are  called  express 
conditions.  A  condition  precedent  is  one  which  must  happen  or  be  per- 
formed before  the  estate  can  vest.  A  condition  subsequent  is  one  upon 
the  failure  of  which  an  estate  already  vested  may  be  defeated.  Non-per- 
formance of  a  condition  precedent  prevents  the  estate  from  vesting.  Non- 
performance  of  a  condition  subsequent  gives  the  grantor,  or  his  heirs, 
the  right  to  enter  and  defeat  the  estate. 

Where  a  grantor  conveys  property  on  which  he  has  given  a  prior 
mortgage,  it  becomes  necessary  in  the  deed  to  bind  the  purchaser  to  as- 
sume and  pay  the  mortgage.  Deeds  are  construed  most  strongly  against 
the  grantor,  and,  unless  the  purchaser  agrees  to  assume  the  mortgage,  no 
implied  obligation  arises  on  his  part  to  do  so.  If  the  purchaser  should 
be  unable  to  pay  the  mortgage,  and  it  should  be  foreclosed,  and  the  pro- 


62  HOW  TO  BUY  AND 

ceeds  of  sale  should  be  insufficient  to  pay  the  debt,  a  deficiency  judgment 
might  be  rendered  against  the  grantor. 

See  also  Form  No.  5,  where  RESTRICTIONS  or  conditions  as  to  the 
value  of  the  improvements,  and  the  distance  the  same  are  to  be  placed  from 
the  front  line  of  the  premises,  are  provided  for. 

(j  to  p)  Covenants  are  of  two  kinds,  Personal  and  those  Running 
with  the  Land. 

(1)  Personal  Covenants,  or  Covenants  of  Title,  are: 

Seisin ; 

Right  to  Convey; 

Against  Grantor's  Own  Acts ; 

Against  Incumbrances. 

(2)  Covenants   Running  with  the  Land,  or   Covenants   relating  to 
Possession : 

Quiet  Enjoyment; 

That  Vendor  Will  Warrant  and  Defend; 

Further  Assurance. 

(j)  The  Covenant  of  Seisin  implies  that  the  grantor  is  in  posses- 
sion of  the  land.  Possession  may  be  actual  or  constructive.  Actual  pos- 
session is  where  the  owner  or  party  entitled  to  possession  actually  occupies 
or  resides  upon  the  land.  In  constructive  possession,  the  land,  although 
the  owner  or  person  entitled  to  possession  does  not  live  upon  it,  is,  in 
contemplation  of  law,  in  his  possession.  The  owner  is  deemed  to  be  con- 
structively in  possession,  although  neither  he  nor  any  one  else  lives  upon 
the  land. 

(i)  A  Covenant  Running  with  the  Land  is  a  condition  inserted  in 
a  deed  by  the  grantor,  binding  the  grantee  to  do  something  upon,  or  ltd 
abstain  from  some  prohibited  use  of,  the  land  conveyed.  A  common  re- 
straint or  restriction  in  modern  times  is  against  the  erection  of  buildings 
of  a  certain  height  or  kind,  or  against  the  carrying  on  of  offensive  trades. 
If  the  grantor,  or  his  heir,  enters  for  breach  of  the  condition,  and  termi- 
nates the  estate  of  the  grantee,  all  conveyances  and  incumbrances  made 
subsequent  to  the  date  of  the  deed  containing  the  condition,  are,  so  far 
as  they  affect  the  premises,  thereby  destroyed.  The  rights  of  the  grantee, 
and  of  his  grantees  and  mortgagees,  in  the  premises,  are  as  if  they  had 
never  existed.  (Curwen  on  Abstracts.) 

(r)  The  name  of  the  grantor  should  be  set  forth  correctly  at  the 
beginning  of  the  deed,  and  the  deed  should  be  signed  accordingly.  If  a 
man  should  sign  ordinarily  as  "J.  S.  Williams,"  and  his  name  should  be 
inserted  in  the  body  of  the  deed  as  "John  S.  Williams,"  John  being  his 
given  name,  he  should  so  sign.  If  the  grantor  is  unable  to  write,  his 
name  can  be  signed  to  the  deed  by  some  other  person,  and  the  grantor  can 
make  his  mark,  which  should  be  witnessed  by  some  one  who  saw  the 
grantor  make  the  mark.  The  signature  of  the  grantor  should  be  written 
opposite  the  printed  seal  on  the  deed.  In  some  of  the  States  and  in  Eng- 
land, a  scroll  for  a  seal  will  not  be  accepted;  a  wafer  or  impression  upon 


ESTATE  AT  A  PROFIT  63 

wax  is  required.     The  witness  clause,  where  the  signature  is  to  be  by  an 
attorney  in  fact,  is  as  follows : 

"!N  WITNESS  WHEREOF,  the  said  party  of  the  first  part  has  hereunto 
set  his  hand  and  seal,  by  James  Wilson,  his  attorney  in  fact,  the  day  and 
year  first  above  written." 

HENRY  HUDSON. 
By  JAMES  WILSON, 

His  Attorney  in  Fact. 

FORM  NO.  14— QUITCLAIM  DEED. 

THIS  INDENTURE,  made  the  tenth  day  of  April,  in  the  year  of  our 
Lord  one  thousand  nine  hundred  a\id  five,  between  Frank  Wright,  of  the 
City  and  County  of  San  Francisco,  State  of  California,  the  party  of  the 
first  part,  and  Asa  White  and  John  Black,  of  the  said  City  and  County,  the 
parties  of  the  second  part,  witnesseth :  That  the  said  party  of  the  first 
part,  for  and  in  consideration  of  the  sum  of  One  Hundred  Dollars,  lawful 
money  of  the  United  States  of  America,  to  him  in  hand  paid  by  the  said 
parties  of  the  second  part,  the  receipt  whereof  is  hereby  acknowledged, 
does  by  these  presents  remise,  release,  and  forever  quitclaim  unto  the  said 
parties  of  the  second  part,  and  to  their  heirs  and  assigns,  all  that  certain 
lot,  piece,  or  parcel  of  land,  situate  in  the  said  City  and  County  of  Sam 
Francisco,  State  of  California,  and  bounded  and  particularly  described  as 
follows,  to-wit : 

(Description.) 

Together  with  all  and  singular  the  tenements,  hereditaments  and 
appurtenances  thereunto  belonging,  or  in  anywise  appertaining,  and  the 
reversion  and  reversions,  remainder  and  remainders,  rents,  issues  and 
profits  thereof. 

To  have  and  to  hold,  all  and  singular  the  said  premises,  together  with 
the  appurtenances,  unto  the  said  parties  of  the  second  part,  and  to  their 
heirs  and  assigns  forever. 

In  witness  whereof,  the  said  party  of  the  first  part  has  hereunto  set 
his  hand  and  seal  the  day  and  year  first  above  written. 

FRANK  WRIGHT.     (Seal) 
(Acknowledgment. ) 

FORM  NO.  15— DEED  FROM  HUSBAND  TO  WIFE. 

DEED  OF  GIFT. 

THIS  INDENTURE,  made  the  5th  day  of  March,  in  the  year  of  our 
Lord  nineteen  hundred  and  five,  between  Leander  Lilly,  of  the  County 
of  Los  Angeles,  State  of  California,  the  party  of  the  first  part,  and  Lucy 
Lilly,  the  wife  of  said  Leander  Lilly,  of  the  County  of  Los  Angeles,  State  of 
aforesaid,  party  of  the  second  part,  witnesseth :  That  the  said  party  of 
the  first  part,  for  and  in  consideration  of  the  love  and  affection  which  the 
said  party  of  the  first  part,  has  and  bears  unto  said  party  of  the  second 
part,  as  also  for  the  better  maintenance,  support,  protection  and  livelihood 
of  said  party  of  the  second  part,  does  by  these  presents,  give,  grant,  alien 
and  confirm,  unto  the  said  party  of  the  second  part,  and  to  her  heirs  and 


64  HOW  TO  BUY  AND 

assigns  forever,  all  that  certain  lot,  piece,  or  parcel,  of  land  situate,  lying 
and  being  in  the  City  of  Los  Angeles,  County  of  Los  Angeles,  State  of 
California,  and  bounded  and  particularly  described  as  follows,  to-wit : 

(Description.) 

Together  with  all  and  singular  the  tenements,  hereditaments  and 
appurtenances  thereunto  belonging  or  in  anywise  appertaining,  and  the 
reversion  and  reversions,  remainder  and  remainders,  rents,  issues  and 
profits  thereof. 

To  have  and  to  hold,  all  and  singular  the  said  premises,  together 
with  the  appurtenances  and  privileges  thereunto  incident,  unto  the  said 
party  of  the  second  part,  her  heirs  and  assigns  forever. 

In  witness  whereof,  the  said  party  of  the  first  part  has  hereunto  set 
his  hand  and  seal,  the  day  and  year  first  above  written. 

LEANDER  LILLY.     (Seal.) 

Signed,  Sealed  and  Delivered  in  the  presence  of 
NATHAN  OLIVER, 
Luis  BLANCO. 

(Acknowledgment.) 

FORM  NO.   16— MINING  DEED. 

THIS  INDENTURE,  Made  the  loth  day  of  March,  in  the  year  of  our 
Lord  one  thousand  nine  hundred  and  five,  between  Abner  Parmely,  Alonzo 
Jones,  Charles  O'Hara  and  Jerome  Curtis,  of  the  County  of  Ventura, 
State  of  California,  the  parties  of  the  first  part,  and  J.  D.  Foster,  of  the 
County  and  State  aforesaid,  the  party  of  the  second  part,  witnesseth : 
That  the  said  parties  of  the  first  part,  for  and  in  consideration  of  the  sum 
of  Five  Hundred  Dollars,  gold  coin  of  the  LTnited  States  of  America,  to 
them  in  hand  paid  by  said  party  of  the  second  part,  the  receipt  whereof 
is  hereby  acknowledged,  have  granted,  bargained,  sold,  remised,  released, 
and  forever  quit-claimed,  and  by  these  presents  do  grant,  bargain,  sell, 
remise,  release  and  forever  quit-claim,  unto  the  said  party  of  the  second 
part,  and  to  his  heirs  and  assigns,  that  certain  placer  mining  ground,  sit- 
uate, in  the  County  of  Ventura,  State  of  California,  in  the  Little  Sespe 
Placer  Mining  District,  known  as  and  called  "My  Dream  Mine,"  con- 
taining 80  acres,  more  or  less,  located  January  i,  1905,  the  location  notice 
thereof  being  of  record  in  the  office  of  the  County  Recorder  of  said  County 
oi  Ventura,  in  Book  12  of  Mining  Claims,  at  page  231,  to  which  said 
notice  and  the  said  record  thereof  reference  is  hereby  made,  as  a  part 
hereof,  for  the  purposes  of  description;  together  with  all  the  dips,  spurs 
and  angles,  and  also  all  the  metals,  ores,  gold  and  silver  bearing  quartz, 
rock  and  earth  therein ;  and  all  the  rights,  privileges  and  franchises  thereto 
incident,  appendant  and  appurtenant,  or  therewith  usually  had  and  en- 
joyed; and  also,  all  and  singular  the  tenements,  hereditaments  and  appurte- 
nances thereto  belonging,  or  in  anywise  appertaining,  and  the  rents,  issues 
and  profits  thereof;  and,  also,  all  the  estate,  right,  title,  interest,  property, 
possession,  claim  and  demand  whatsoever,  as  well  in  law  as  in  equity,  of 
the  said  parties  of  the  first  part,  of,  in,  or  to  the  said  premises,  and  every 
part  and  parcel  thereof,  with  the  appurtenances. 


REAL,  ESTATE  AT  A  PROFIT  65 

[NOTE — In  a  conveyance  of  oil  lands,  the  wording  would  be:  "To- 
gether with  all  and  all  kinds  of  oil,  petroleum,  maltha,  asphaltum,  brea, 
and  rock  and  earth  containing  these  and  other  hydro-carbon  and  kindred 
substances  therein,"  etc.] 

To  have  and  to  hold,  all  and  singular,  the  said  premises,  together 
with  the  appurtenances  and  privileges  thereto  incident,  unto  the  said  party 
of  the  second  part,  and  to  his  heirs  and  assigns  forever. 

In  witness  whereof,  the  said  parties  of  the  first  part  have  hereunto 
set  their  hands  and  seals,  the  day  and  year  first  above  written. 

ABNER  PARMELY,  (Seal) 

ALONZO  JONES,  (Seal) 

CHARLES  O'HARA,          (Seal) 
JEROME  CURTIS.  (Seal) 

(Acknowledgment.) 

FORM  NO.   17— DEED  TO  COUNTY  FOR  RIGHT  OF  WAY  FOR 

ROAD. 

State  of  California,  County  of  Santa  Barbara,  ss. 

WHEREAS,  Jesse  Hall,  James  Roach,  N.  O.  Nelson  and  Elmer  Stearns, 
inhabitants  of  Road  District  number  Ten  of  Santa  Barbara  County,  tax- 
able therein  for  road  purposes,  have  petitioned  in  writing  the  Board  of 
Supervisors  of  said  Santa  Barbara  County  to  lay  out  a  new  road  therein, 
as  set  forth  in  their  petition,  dated  the  fourth  day  of  April,  1905,  and  filed 
with  the  Clerk  of  said  Board,  which  said  road  is  proposed  to  be  located  fifty 
(50)  feet  in  width  in  said  Road  District  No.  10,  County  and  State  aforesaid, 
as  follows,  to-wit :  Twenty-five  (25)  feet  on  each  side  of  the  following 
described  line :  Commencing  at  a  post  on  the  East  side  of  the  Santa  Ynez 
River,  etc.,  to  a  post  in  the  center  of  the  County  Road,  and  the  terminus 
of  the  road  petitioned  for. 

Now,  therefore,  in  consideration  of  the  location  and  establishment 
of  said  road  as  above  described,  and  of  the  benefits  to  accrue  to  us  and 
each  of  us  by  such  location,  we,  the  undersigned,  owners,  occupants  and 
claimants  of  land  required  for  road  purposes  on  the  line  of  the  foregoing 
designated  route,  hereby  signify  our  approval  of  the  location  of  said  road, 
and  do  hereby  consent  thereto;  and  we  do  hereby  grant  and  dedicate  the 
lands  belonging  to  us  and  each  of  us,  so  far  as  the  same  may  be  required 
for  such  road,  to  said  County  of  Santa  Barbara,  to  that  purpose  and  for  the 
use  of  such  road ;  and  we  hereby  waive  all  claims  for  damage  for  and  on 
account  of  the  same. 

The  grant  of  said  lands  to  said  County  by  said  grantors  is  made  on 
the  condition  that  should  the  said  grantee  for  any  reason  fail  to  use  the 
lands  hereby  granted  as  a  public  highway,  then  the  title  hereby  granted 
shall  revert  back  to  the  grantors  herein,  their  heirs  or  assigns,  without 
incumbrance. 

In  witness  whereof,  we  hereunto  set  our  hands  and  seals,  this  25th  day 
of  April,  1905. 

JESSE  HALL,  (L.  S.) 

JAMES  ROACH,  (L.  S.) 
N.  O.  NELSON,  (L.  S.) 
ELMER  STEARNS.  (L.  S.) 


66  HOW  TO  BUY  AND  SELL 

FORM  NO.  18— CERTIFIED  COPY  OF  RESOLUTION  PREFIXED 

TO  DEED  OF  CORPORATION  CONVEYING 

AGRICULTURAL  RIGHTS. 

RESOLVED,  That  this  Corporation,  Blue  Bird  Oil  Company,  sell  to 
Oliver  Owlett,  in  consideration  of  Ten  Dollars  ($10.00)  and  other  good 
and  valuable  considerations,  all  the  right,  title  and  interest  of  this  corpora- 
tion to  the  possession,  occupation  and  use  of  the  soil  or  surface  of  the 
ground  for  the  purpose  of  agriculture,  horticulture  and  grazing  only,  of, 
in  and  to  all  that  certain  mining  claim  known  as  "My  Dream"  Placer  Mining 
Claim,  situated  in  the  County  of  Orange,  State  of  California,  and  being 
the  Southwest  Quarter  of  the  Southeast  Quarter  of  Section  One  (i),  in 
Township  30  North,  Range  20  West,  San  Bernardino  Meridian,  reserving 
the  petroleum  and  other  mineral  substances  thereunder,  said  deed  to  be  in 
such  form  as  the  attorney  of  this  Corporation  may  determine;  and  the 
President  and  Secretary  of  this  Corporation  be,  and  the-'  are  hereby  author- 
ized and  directed,  in  the  name,  on  behalf  and  under  the  seal  of  this  Cor- 
poration, to  execute  and  deliver  said  deed,  and  to  perform  any  and  all  acts, 
and  execute  all  papers,  or  cause  the  same  to  be  done,  which  are,  or  may  be 
necessary  to  fully  carry  out  and  complete  such  transfer. 

I,  Prester  John,  Secretary  of  the  Blue  Bird  Oil  Company,  hereby 
•certify  the  foregoing  to  be  a  full,  true  and  correct  copv  of  a  resolution 
duly  passed  and  adopted  by  the  Board  of  Directors  of  said  Corporation  at 
a  regular  meeting  of  said  Board,  held  on  the  loth  day  of  April,  1905,  a't 
which  meeting  a  majority  of  the  said  Board  was  present  and  voted  in 
favor  of  the  adoption  of  said  resolution,  and  that  the  same  now  is  in  full 
force  and  effect. 

"Witness  my  hand  and  the  seal  of  said  Blue  Bird  Oil  Company,  this 
loth  day  of  April,  1905. 
(Corporate  Seal)  PRESTER  JOHN, 

Secretary  Blue  Bird  Oil  Company. 

THIS  INDENTURE,  Made  this  loth  day  of  April,  A.  D.  1905,  oy  and 
between  Blue  Bird  Oil  Company,  a  Corporation  organized  and  existing 
under  the  laws  of  the  State  of  California,  and  having  its  principal  place  of 
business  at  the  City  of  Los  Angeles,  in  said  State,  party  of  the  first  part, 
and  Oliver  Owlett,  of  the  County  and  State  aforesaid,  party  of  the  second 
part; 

Witnesseth :  That  the  said  party  of  the  first  part,  for  and  in  considera- 
tion of  the  sum  of  Ten  (10)  Dollars,  gold  coin  of  the  United  States  of 
America,  to  it  in  hand  paid  by  said  party  of  the  second  part,  the  receipt 
whereof  is  hereby  acknowledged,  and  for  other  good  and  sufficient  con- 
siderations it  thereunto  moving,  doth  remise,  release  and  quitclaim,  sub- 
ject to  all  and  several  the  conditions,  reservations  and  exceptions  herein- 
after expressed,  unto  said  party  of  the  second  part,  his  heirs  and  assigns 
forever,  all  the  right,  title  and  interest  of  said  party  of  the  first  part  to  the 
possession,  occupation  and  use  of  the  soil  or  surface  of  the  ground,  for  the 
purposes  of  agriculture,  horticulture  and  grazing  only,  of,  in  and  upon  that 
certain  mining  claim  known  as  the  "My  Dream  Placer  Mining  Claim,"  sit- 


ESTATE  AT  A  PROFIT  67 

uated  in  the  County  of  Orange,  State  of  California,  and  being  the  South- 
west Quarter  VS.  W.  J4)  of  the  Southeast  Quarter  (S.  E.  l/4}  of  Section 
One  (i),  Township  Thirty  (30)  North,  Range  Twenty  (20)  West,  San 
Bernardino  Base  and  Meridian;  said  My  Dream  Placer  Mining  Claim 
having  been  conveyed  to  the  party  of  the  first  part  by  Letters  Patent 
of  the  United  States  of  America,  bearing  date  the  22nd  day  of  June,  one 
thousand  nine  hundred  and  four. 

It  is  expressly  stipulated,  covenanted  and  agreed  by  and  between 
the  parties  hereto,  that  the  party  of  the  second  part  acquires  by  this  con- 
veyance no  further  right,  title,  interest,  estate  or  privileges  in,  to  or  upon 
the  said  tract  of  land  above  described  than  those  above  expressly  described 
and  conveyed,  and  especially  and  particularly  that  he  acquires  no  right, 
title  or  interest  in  and  to  the  petroleum  oil,  asphaltum  and  other  hydro- 
carbon substances,  or  to  any  mineral  substance  of  any  kind  whatsoever 
situated  and  contained  in  the  said  lands.  And  the  party  of  the  first  part 
hereby  expressly  excepts,  reserves  and  retains  to  and  for  the  benefit  of 
itself,  its  successors  and  assigns,  all  and  all  kinds  of  mineral  substances 
contained  in  said  lands,  and  especially  and  particularly  all  and  all  kinds 
of  petroleum  oil,  maltha,  asphaltum,  mineral  or  oil  bearing  rocks  and 
sand,  gravel,  earth,  and  other  material  containing,  bearing  or  yielding  said 
substances,  or  any  of  them ;  and  also  all  natural  gas,  or  other  hydro-carbon, 
or  other  similar  or  kindred  substances  in,  upon,  under  or  underneath  said 
lands. 

And  it  is  understood,  covenanted  and  agreed  that  the  right  of  the  party 
of  the  second  part,  his  heirs  and  assigns,  to  the  use,  possession  and  occu- 
pation of  the  surface  and  soil  of  said  lands  for  the  purposes  aforesaid,  is 
subject  to  the  paramount  right  of  the  party  of  the  first  part,  its  successors 
and  assigns,  to  the  use,  possession  and  occupation  of  the  said  surface  and 
soil  of  said  lands  so  far  as  the  same  shall  be  necessary  for  its  use  in  dig- 
ging, mining  and  boring  for  and  otherwise  exploring  for  and  obtaining, 
extracting  and  producing  said  substances,  or  any  of  them,  in  and  upon 
said  parcel  of  land,  and  for  taking  away  and  removing  the  said  substances 
therefrom;  and  the  party  of  the  first  part  doth  hereby  except  and  reserve 
the  perpetual  and  exclusive  right  to  so  dig,  mine  and  bore  for,  and  other- 
wise to  explore  for  and  obtain,  extract  and  produce  said  substances!,  or 
any  of  them,  in  and  upon  said  parcel  of  land,  and  to  take  away  said  sub- 
stances therefrom;  together  with  all  rights  of  entry  and  rights  of  way  in, 
upon  and  over  said  parcel  of  land,  and  every  part  thereof,  for  roads,  pipe 
lineb,  telephone  lines,  and  for  all  other  purposes  that  may  be  necessary  for 
the  enjoyment  of  the  estate,  rights  and  interests  hereby  reserved  and  ex- 
ecuted, and  for  the  carrying  on  of  mining  operations  on  said  lands,  and 
for  the  securing  and  transporting  of  said  substances  in,  upon,  over  and 
through  said  parcel  of  land;  together  with  all  rights  of  way  and  rights  of 
entry  in,  upon  and  over  said  parcel  of  land  which  may  be  necessary  or  con- 
venient to  give  ingress  to  and  egress  from  said  lands,  or  to  and  from  any 
adjoining  lands  that  may  be  operated  for  oil  or  other  minerals  by  said 
party  of  the  first  part,  and  for  conveying  machinery,  tools,  materials,  sup- 
plies, water,  oil,  and  other  substances  to  and  from  said  adjoining  lands. 


68  HOW  TO  BUY  AND  SELL 

It  is  understood  and  agreed  that  the  party  of  the  second  part  shall 
have  the  right  to  so  much  of  the  water  now  flowing,  or  which  may  here- 
after be  developed,  upon  the  lands  above  described,  as  shall  not  be  needed 
and  used  by  the  said  party  of  the  first  part  in  carrying  on  said  mining- 
operations ;  also  that  said  party  of  the  first  part  shall  and  will  at  its  own 
cost  and  expense,  provide,  so  far  as  is  practicable  and  reasonable,  for  the 
disposal  of  sand,  rock,  earth,  gravel,  water,  oil,  and  other  substances  which 
may  be  encountered  and  removed  to  the  surface  in  boring  of  wells  for 
oil  or  water,  or  in  any  other  mining  operations  carried  on  by  it  in  and  upon 
said  parcel  of  land,  and  for  the  conveyance  of  the  same  by  open  ditches 
wherever  practicable  to  water  channels  or  gulches  within  the  boundaries 
of  said  parcel  of  land;  and  also  that  said  party  of  the  first  part  shall  lay 
any  pipe  lines  which  it  may  locate  upon  the  tillable  portions  of  said  land 
under  the  surface  of  the  soil  so  that  the  same  shall  not  interfere  with  the 
plowing  or  cultivation  of  said  lands. 

In  witness  whereof,  said  party  of  the  first  part  hath  hereunto  caused 
its  corporate  name  to  be  subscribed  and  its  corporate  seal  to  be  affixed  by 
its  President  and  its  Secretary,  thereunto  duly  authorized,  the  day  and  year 
herein  first  above  written. 

BLUE  BIRD  OIL  COMPANY. 
(Corporate  Seal)  By  PETER  PRIOR,  Its  President. 

By  PRESTER  JOHN,  Its  Secretary. 
(Acknowledgment.) 

FORM  NO.  10— DEED  FROM  INDIVIDUALS  TO  CORPORATION, 
CONVEYING  MINING  RIGHTS,  TOGETHER  WITH 
STOCKHOLDER'S  RATIFICATION  OF  AC- 
QUISITION OF  SAME. 

THIS  INDENTURE,  Made' this  2Oth  day  of  March,  A.  D.  1905,  by  and 
between  John  Kingsley  and  Ella  Kingsley,  his  wife,  of  the  County  of  Los 
Angeles,  State  of  California,  parties  of  the  first  part,  and  Blue  Bird  Oil 
Company,  a  Corporation,  incorporated  and  existing  under  the  laws  of 
the  State  of  California,  and  having  its  principal  place  of  business  at  Los 
Angeles,  California,  the  party  of  the  second  part, 

Witnesseth :  That  the  parties  of  the  first  part,  for  and  in  considera- 
tion of  the  sum  of  Ten  Dollars  ($10.00)  lawful  money  of  the  United 
$tates,  to  them  in  hand  paid  by  the  said  party  of  the  second  part,  and 
other  good  and  valuable  considerations  them  thereunto  moving,  the  receipt 
whereof  is  hereby  acknowledged,  do  by  these  presents  grant,  bargain,  sell, 
convey,  assign,  transfer  and  set  over  unto  the  said  party  of  the  second 
part,  and  to  its  successors  and  assigns,  forever,  all  petroleum,  coal  oil, 
naphtha,  natural  gas,  and  other  hydro-carbons  and  like  substances,  includ- 
inar  asphaltum  and  brea,  in,  upon  and  under  all  those  certain  lands  situated 
in  the  County  of  Los  Angeles,  State  of  California,  to-wit: 

(Description.) 

Together  with  the  right,  privilege  and  easement  to  enter  in  and  upon 


ESTATE  AT  A  PROFIT  69 

said  parcels  of  land  above  described,  and  any  part  or  parcel  thereof,  in  such 
manner  and  with  such  machinery,  engines,  tools,  rigs,  materials,  and  sup- 
plies as  .may  be  proper,  necessary  or  usual,  and  therein  to  explore,  dig1, 
mine  and  drill  for  the  substances  above  named;  and  also  the  right  to  erect 
buildings,  derricks,  tanks,  and  other  structures  usual,  nroper  or  necessary 
to  extract,  sever  and  remove  all  or  any  of  said  substances  from  said  lands ; 
and  in  and  upon  said  land  to  collect,  save,  store,  and  handle  for  market 
anv  and  all  of  said  substances ;  to  have,  take,  and  remove  said  substances, 
or  any  of  them,  from  said  premises,  for  the  sole  and  exclusive  use,  benefit 
and  behoof  of  the  said  party  of  the  second  part,  its  successors  or  assigns ; 
and  also  the  full,  free  and  perpetual  right  of  ingress  and  egress  therefrom 
at  reasonable  and  proper  places,  and  rights  of  way  upon  and  over  the  said 
lands  above  described  for  the  purposes  herein  provided,  convenient  and 
necessary  for  the  exercise  of  the  rights  hereby  granted ;  together  with  rea- 
sonable rights  of  way  for  telephone  and  telegraph  lines  and  for  roads; 
together  with  reasonable  rights  of  way  for  pipe  lines  for  conveying  to, 
from  and  across  the  lands  hereinbefore  described,  oil,  gas  or  water,  or 
other  kindred  substances  wherever  produced  ;  together  with  all  necessary  and 
reasonable  rights  of  location  upon  the  lands  above  described,  for  wells, 
derricks,  rigs,  hoisting  works,  tanks,  pumps,  engines,  and  other  necessary 
machinery,  materials  and  supplies,  and  for  houses,  work  shops,  pumping 
stations,  and  such  buildings  or  structures  as  may  be  necessary  or  proper 
for  the  proper  exercise  of  the  rights  hereby  granted. 

Provided,  however,  that  all  pipe  lines  constructed  upon  said  lands 
for  the  purposes  of  any  of  the  uses  hereby  authorized,  or  for  the  convey- 
ance of  any  of  the  s-ubstances  hereby  granted,  shall  be  buried  in  the  soil 
to  such  a  depth  and  in  such  a  manner  that  they  will  not  interfere  with  the 
cultivation  of  the  soil,  and  that  said  pipe  lines  and  telephone  lines  shall 
always  be  so  maintained  and  operated  as  not  improperly  to  interfere  with 
or  obstruct  the  cultivation  of  the  land,  or  the  use  thereof  for  live-stock 
purposes,  or  the  passage  thereover  of  persons  or  of  live-stock. 

Together  with  the  right  to  the  use  of  wnatever  water  may  be  de- 
veloped from  such  wells  as  may  be  sunk  by  the  party  of  the  second  part, 
or  its  successors  or  assigns,  for  the  purpose  of  exploring  or  taking  from 
said  lands  the  said  mineral  products. 

To  have  and  to  hold  all  the  said  property,  and  every  part  and  parcel 
thereof,  with  the  appurtenances,  unto  the  said  party  of  the  second  part,  its 
successors  and  assigns,  forever. 

In  witness  whereof,  the  parties  of  the  first  part  have  hereunto  set 
their  hands  and  seals  the  day  and  year  herein  first  above  written. 

JOHN  KINGSLEY.         (Seal) 
ELLA  KINGSLEY.         (Seal) 
(Acknowledgment.) 

We,  the  undersigned  stockholders  of  the  Blue  Bird  Oil  Company,  a 
corporation,  organized  and  existing  under  the  laws  of  the  State  of  Califor- 
nia, and  having  a  capital  stock  of  Fifty  Thousand  Dollars  ($50,000.00), 
divided  into  500  (Five  Hundred)  shares  of  the  par  value  of  One  Hundred 


70  HOW  TO  BUY  AND 

Dollars  ($100.00),  each,  and  severally  the  owners  and  holders  on  the  books 
of  said  corporation  of  the  number  of  shares  of  said  corporation  set  oppo- 
site our  respective  signatures,  and  together  owning  and  holding  more  than 
two-thirds  of  the  entire  issued  and  outstanding  shares  of  said  corporation, 
do  ratify,  approve  and  confirm  a  certain  deed,  dated  the  tenth  day  of  April, 
1905,  made  by  John  Kingsley  and  Ella  Kingsley  to  this  corporation,  where- 
by this  corporation  acquired  the  additional  mining  ground  therein  described 
and  the  rights  and  interests  therein  set  forth  for  the  consideration  therein 
mentioned ;  and  we  do  also  hereby  ratify  and  approve  the  act  and  acts  of 
the  Board  of  Directors  and  officers  of  the  said  Blue  Bird  Oil  Company  in 
the  acquisition  of  the  additional  mining  ground  in  said  conveyance  men- 
tioned. 

IN  WITNESS  WHEREOF,  we  have  hereunto  set  our  hands  and  seals  this 
nth  day  of  April,  1905. 

Name.  No.  of  Shares. 

F.  X.  BROWN,         (Seal)  213 

L.  W.  COYNE,         (Seal)  5 

SAMUEL    SILENT,    (Seal)  87 

PETER   PRIOR,          (Seal)  112 

ROGER   BROWN,        (Seal)  27 

PRESTER  JOHN,       (Seal)  12 

(Acknowledgments  of  Stockholders.) 

I,  the  undersigned  Secretary  of  the  Blue  Bird  Oil  Company,  a  cor- 
poration, hereby  certify  that  the  capital  stock  of  said  corporation  is  di- 
vided into  Five  Hundred  (500)  shares  of  the  par  value  of  One  Hundred 
Dollars  ($100.00),  each,  aggregating  Fifty  Thousand  Dollars  ($50,000.00), 
all  of  which  has  been  issued  and  is  now  outstanding,  and  that  the  books  of 
said  corporation  show  that  the  following  persons  are  the  owners  and 
holders  of  the  number  of  shares  of  said  stock  set  onnosite  their  respective 
names,  to-wit: 

Name.  No.  of  Shares. 

F.  X.  BROWN,  213 

L.  W.   COYNE,  5 

SAMUEL  SILENT,  87 

PETER  PRIOR,  112 

ROGER   BROWN,  27 

PRESTER  JOHN,  12 

MANUEL  MASON,  44 

And  that  the  persons  whose  names  are  signed  to  the  foregoing  rati- 
fication, aggregating  456  shares,  constitute  more  than  two-thirds  of  the 
issued  and  outstanding  shares  of  the  capital  stock  of  said  corporation. 

WITNESS  my  hand  and  the  seal  of  said  corporation  this  nth  day  of 
April,  1905. 
(Corporate  Seal)  PRESTER  JOHN, 

Secretary  of  Blue  Bird  Oil  Company. 
State  of  California,  County  of  Los  Angeles,  ss. 

Qn  this  nth  day  of  April,  in  the  year  of  Our  Lord,  One  Thousand 


REAL  ESTATE:  AT  A  PROFIT  71 

Nine  Hundred  and  Five,  before  me,  Samuel  Bristow,  a  Notary  Public  in 
and  for  said  County  of  Los  Angeles,  State  of  California,  residing  therein, 
duly  commissioned  and  sworn,  personally  appeared  Prester  John,  known 
to  me  to  be  the  Secretary  of  the  Blue  Bird  Oil  Company  and  known  to 
me  to  be  the  person  whose  name  is  subscribed  to  the  foregoing  instrument, 
and  he  acknowledged  to  me  that  he  executed  the  same. 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  affixed  my 
official  seal  the  day  and  year  in  this  certificate  first  above  written. 
(Notarial  Seal)  SAMUEL  BRISTOW. 

Notary  Public  in  and  for  the  County  of  Los  Angeles,  State  of  California. 

FORM   NO.   20.— CERTIFIED   COPY  OF  RESOLUTION   OF  COR- 
PORATION, AUTHORIZING  OFFICERS 

TO  EXECUTE  DEEDS. 
State  of  California,  County  of  Los  Angeles,  ss. 

If  David  Davis,  do  hereby  certify  that  I  am  Secretary  of  the  Union 
Land  Company,  a  corporation,  organized  and  existing  under  the  laws  of 
the  State  of  California,  and  having  its  principal  place  of  business  in  the 
City  of  Los  Angeles,  County  of  Los  Angeles,  State  of  California;  that  at 
A  meeting  of  the  Board  of  Directors  of  said  corporation,  which  said  meet- 
ing was  duly  and  regularly  called  in  accordance  with  the  by-laws  of  said 
corporation,  and  held  on  the  6th  day  of  February,  A.  D.  1905,  a  resolution, 
of  which  the  following  is  a  full,  true  and  correct  copy,  was  duly  passed, 
adopted  and  concurred  in,  and  appears  of  record'  in  the  minute  book  of 
said  corporation  as  a  part  of  the  record  of  the  minutes  of  said  Board  of 
Directors  held  on  the  day  last  above  mentioned,  and  is  as  follows,  to-wit: 

"RESOLVED,  That  the  President,  or  in  his  absence  or  inability  to  act, 
then  the  Vice  President,  of  this  corporation,  Union  Land  Company,  be, 
and  he  is  hereby,  instructed,  authorized,  empowered  and  directed,  in  the 
name  of  and  on  behalf  of  this  corporation,  and  as  its  corporate  act  and 
deed,  to  make,  execute  and  deliver  any  and  all  deeds  of  property  standing 
in  the  name  of  or  owned  by  this  corporation;  and  that  the  Secretary  of 
this  corporation  be,  and  he  is  hereby,  instructed,  authorized,  empowered 
and  directed  to  affix  to  the  said  deeds  the  corporate  seal  of  this  corpora- 
tion and  to  attest  the  same  by  his  signature;  and  the  said  President,  or  in 
his  absence  or  inability  to  act,  then  the  said  Vice  President,  and  the  said 
Secretary,  or  any  or  either  of  them,  are  hereby  authorized,  instructed  and 
empowered  to  acknowledge,  in  the  name  and  behalf  of  this  corporation, 
any  and  all  such  deeds  so  as  to  entitle  the  same  to  be  recorded,  and  to  do 
and  perform  any  other  act  or  thing  whatsoever,  or  cause  the  same  to  be 
done,  requisite  or  necessary  to  fully  carry  out  the  purposes  of  this  reso- 
lution according  to  the  true  intent  and  meaning  of  the  same.  Also 

"RESOLVED,  That  the  Secretary  be,  and  he  is  hereby,  instructed  to 
file  a  certified  copy  of  this  resolution,  over  his  signature,  with  the  corporate 
seal  affixed  thereto,  and  duly  acknowledged  by  him  as  the  act  of  and  in 
behalf  of  this  corporation,  in  the  office  of  the  County  Recorder  of  the 
County  of  Los  Angeles,  and  in  the  offices  of  the  County  Recorders  of  such 


72  HOW  TO  BUY  AND 

other  Counties  wherein  is  situate  any  property  belonging  to  this  corpora- 
tion." 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  affixed 
hereto  the  corporate  seal  of  said  corporation,  Union  Land  Company,  this 
6th  day  of  February,  A.  D.  1905. 
(Corporate  Seal)  DAVID  DAVIS, 

Secretary  of  Union  Land  Company. 
(Corporation  Acknowledgment.) 

FORM  NO.  21— DEED  TO  BE  IMMEDIATELY  DELIVERED,  BUT 
RESERVING  LIFE  ESTATE. 

This  Indenture,  made  the  ninth  day  of  April,  in  the  year  of  our  Lord 
one  thousand  nine  hundred  and  five,  between  Henry  Hatfield,  of  the 
County  of  Los  Angeles,  State  of  California,  the  party  of  the  first  part,  and 
Hiram  Hatfield,  of  the  County  and  State  aforesaid,  the  party  of  the  sec- 
ond part 

Witnesseth,  That  the  said  party  of  the  first  part,  for  and  in  considera- 
tion of  the  sum  of  Ten  Dollars,  Gold  Coin  of  the  United  States  of 
America,  to  him  in  hand  paid  by  said  party  of  the  second  part,  the  re-i 
ceipt  whereof  is  hereby  acknowledged,  does  by  these  presents,  Grant,  Bar- 
gain and  Sell,  convey  and  confirm,  unto  the  said  party  of  the  second  part, 
and  to  his  heirs  and  assigns  forever,  all  those  certain  lots,  pieces  or  par- 
cels of  land  situate,  lying  and  being  in  the  County  of  Los  Angeles,  State 
of  California,  and  bounded  and  particularly  described  as  follows,  to-wit: 

(Description.) 

Together  with  all  and  singular  the  tenements,  hereditaments  and  ap- 
purtenances thereunto  belonging  or  in  anywise  appertaining,  and  the  re- 
version and  reversions,  remainder  and  remainders,  rents,  issues  and  profits 
thereof : 

To  have  and  to  hold  all  and  singular  the  said'  premises,  together 
with  the  appurtenances,  from  and  after  the  death  of  the  party  of  the  first 
part,  unto  said  party  of  the  second  part,  his  heirs  and  assigns,  forever; 
reserving  unto  said  party  of  the  first  part  all  and  singular  the  said  prem- 
ises and  each  and  every  part  thereof  during  the  lifetime  of  said  party  of 
the  first  part,  for  his  sole  use,  benefit  and  behoof,  with  the  right  to  have, 
hold,  occupy  and  enjoy  the  aforesaid  premises,  together  with  the  rents,  is- 
sues, profits  and  proceeds  arising  therefrom,  wholly  free  from  the  control, 
interference,  debts  and  liabilities  of  said  party  of  the  second  part  or  any 
other  person  whomsoever. 

IN  WITNESS  WHEREOF,  The  said  party  of  the  first  part  has  hereunto 
set  his  hand  and  seal  the  day  and  year  first  above  written. 

HENRY  HATFIELD.  (Seal.) 

(  Acknowledgment. ) 

FORM  NO.  22— GENERAL  ACKNOWLEDGMENT.  (CALIFORNIA.) 

State  of  California,  County  of  Los  Angeles,  ss. 

On  this  thirteenth  day  of  April,  in  the  year  of  our  Lord,  One  Thou- 
sand Nine  Hundred  and  Five,  before  me,  Harry  Henry,  a  Notary  Public 


REAL  ESTATE)  AT  A  PROFIT  73 

in  and  for  said  County  of  Los  Angeles,  State  of  California,  residing  there- 
in, duly  commissioned  and  sworn,  personally  appeared  Lemuel  Belding, 
known  to  me  to  be  the  person  described  in  and  whose  name  is  subscribed 
to  the  foregoing  instrument  and  he  acknowledged  to  me  that  he  executed 
the  same. 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  affixed  my 
official  seal  the  day  and  year  in  this  certificate  first  above  written. 
(Notarial  Seal)  HARRY  HENRY. 

Notary  Public  in  and  for  the  County  of  Los  Angeles,  State  of  California. 

FORM  NO.  23— CORPORATION  ACKNOWLEDGMENT. 

(CALIFORNIA.) 
State  of  California,  County  of  Los  Angeles,  ss. 

On  this  second  day  of  February,  A.  D.  1903,  before  me,  N.  W. 
Tilden,  a  Notary  Public  in  and  for  the  said  County  of  Los  Angeles, 
State  of  California,  duly  commissioned  and  sworn,  personally  appeared 
William  H.  Brown,  known  to  me  to  be  the  President,  and  O.  P.  Carle, 
known  to  me  to  be  the  Secretary  of  the  Century  Building  Company, 
said  Company  having  its  principal  place  of  business  in  the  said  City 
of  Los  Angeles  and  being  one  of  the  corporations  that  executed  the  within 
instrument,  and  they  acknowledged  to  me  that  such  corporation  executed 
the  same. 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  affixed  my 
official  seal  the  day  and  year  in  this  certificate  first  above  written. 
(Notarial  Seal)  N.  W.  TILDEN. 

Notary  Public  in  and  for  the  County  of  Los  Angeles,  State  of  California. 

FORM     NO.     24.— PARTY    PROVEN    ON    OATH    OF    CREDIBLE 
WITNESS,     AND    ACKNOWLEDGMENT     OF 

PARTY.  (CALIFORNIA.) 
State  of  California,  County  of  Los  Angeles,  ss. 

On  this  twelfth  day  of  April,  in  the  year  Nineteen  Hundred  and 
Five,  before  me,  Samuel  Bristow,  a  Notary  Public  in  and  for  the  said 
County  of  Los  Angeles,  State  of  California,  residing  therein,  duly  com- 
missioned and  sworn,  personally  appeared  Lemuel  Belding,  proved  to  me 
on  the  oath  of  Eugene  Cowles,  a  competent  and  credible  witness  for  that 
purpose,  by  me  duly  sworn,  to  be  the  person  described  in,  whose  name  is 
subscribed  to,  and  who  executed  the  within  instrument  and  acknowledged 
to  me  that  he  executed  the  same. 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  affixed  my 
official  seal  the  day  and  year  in  this  certificate  first  above  written. 
(Notarial  Seal)  SAMUEL  BRISTOW, 

Notary  Public  in  and  for  the  County  of  Los  Angeles,  State  of  California. 

FORM   NO.   25— ACKNOWLEDGMENT— ATTORNEY-IN-FACT. 
State  of  California,  County  of  Los  Angeles,  ss. 

On  this  tenth  day  of  April,  in  the  year  Nineteen  Hundred 
and  Five,  before  me,  Samuel  Bristow,  a  Notary  Public  in  and  for 


74  HOW  TO  BUY  AND 

said  County  of  Los  Angeles,  State  of  California,  residing  therein,  duly 
commissioned  and  sworn,  personally  appeared  E.  J.  Blair,  known  to  me  to 
be  the  person  whose  name  is  subscribed  to  the  within  instrument,  as  the 
attorney-in-fact  of  M.  T.  Brooks,  and  acknowledged  to  me  that  he  sub- 
scribed the  name  of  M.  T.  Brooks  thereto  as  principal,  and  his  own  name  as 
attorney-in-fact. 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  affixed  my 
official  seal  the  day  and  year  in  this  certificate  first  above  written. 
(Notarial  Seal)  SAMUEL  BRISTOW, 

Notary  Public  in  and  for  the  County  of  Los  Angeles,  State  of  California. 

FORM  NO.  26— SUBSCRIBING  WITNESS. 

State  of  California,  County  of  Los  Angeles,  ss. 

On  this  tenth  day  of  Aprils  in  the  year  Nineteen  Hundred  and  Five, 
before  me,  Samuel  Bristow,  a  Notary  Public  in  and  for  said  County  of 
Los  Angeles,  State  of  California,  residing  therein,  duly  commissioned  and 
sworn,  personally  appeared  Eben  J.  Blair,  known  to  me  to  be  the  person 
whose  name  is  subscribed  to  the  within  and  annexed  instrument  as  a  wit- 
ness thereto,  who,  being  by  me  duly  sworn,  deposed  and  said:  That  he 
resides  in  the  City  of  Los  Angeles  and  that  he  was  present  and  saw  Willis 
P.  Lighthead,  personally  known  to  him  to  be  the  same  person  whose  name 
is  subscribed  to  the  within  and  annexed  instrument,  sign,  seal  and  deliver 
the  same,  and  he  acknowledged  in  the  presence  of  said  affiant  that  he  ex- 
ecuted the  same;  and  that  said  affiant  subscribed  his  name  thereto  as  a 
witness. 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  affixed  my 
official  seal  the  day  ana  year  in  this  certificate  first  above  written. 
(Notarial  Seal)  SAMUEL  BRISTOW, 

Notary  Public  in  and  for  said  County  and  State  of  California. 


REAL  ESTATE  AT  A  PROFIT  75 

CHAPTER  VI. 

MAKING    A     LOAN,     INCLUDING    EXECUTION     OF     MORTGAGES    AND 
DEEDS  OF  TRUST. 

Lord  Burleigh's  Advice  on  Making  a  Loan — Keeping  Accounts  with  Banks — 
Applying  For  a  Loan — Cringing  Applicants  Receive  Few  Financial  Favors — Loans 
From  Building  and  Loan  Associations — Executing  Mortgage  or  Trust  Deed,  and 
Forms  Thereof — Two  Short  Rules  For  Computing  Interest — Reserving  Right  to  Pay 
Note  Before  Maturity — Punctuality  In  Paying  Interest — Selling  Mortgaged  Property — 
Particulars  Relating  to  the  Execution,  Assignment,  Partial  Release,  Full  Satisfaction, 
Foreclosure  and  Redemption  of  Mortgages,  and  to  the  Execution  and  Re-Conveyance 
of  Trust  Deeds. 

Sec.  93.  In  regard  to  making  a  loan,  the  advice  of  Lord 
Burleigh  may  not  be  amiss :  "Borrow  not  money  of  a  neigh- 
bor, or  a  friend,  but  of  a  stranger,  where,  paying  for  it,  thou 
S'halt  hear  no  more  of  it.  Otherwise  thou  shalt  eclipse  they 
credit,  lose  thy  freedom,  and  yet  pay  as  dearly  as  to  another. 
But  in  borrowing  of  money  be  precious  of  thy  word,  for  he 
that  hath  care  of  keeping  days  of  payment  is  lord  of  another 
man's  purse." 

Sec.  94.  Every  person  who  is  accumulating  capital  will 
find  it  to  his.  advantage  to  keep  an  account  with  some  bank. 
All  monies  received  by  him,  should  be  deposited  in  the  bank, 
and  all  withdrawals  made  by  means  of  checks.  The  bank  thus 
becomes  his  book-keeper,  and  he  does  not  run  the  risk  of  los- 
ing money  or  of  making  mistakes  in  counting  it.  In  opening 
an  account  with  a  bank,  it  is  advisable  to  have  a  personal  in- 
troduction to  the  cashier  from  some  friend  known  to  the  bank 
officers.  This  is  not  necessary,  however,  if  one  has  a  consid- 
erable sunn  of  money  to  deposit,  as  the  money  is  the  best  refer- 
ence. At  the  time  the  deposit  is  made,  the  depositor  should 
obtain  a  passbook  in  which  to  have  his  deposits  entered  up,  and 
a  check  book,  with  which  to  draw  checks. 

Sec.  95.  In  real  estate  deals,  where  the  buyer  cannot  pay 
the  purchase  price  in  full,  in  cash,  and  the  seller  will  not  take 
back  a  mortgage,  it  becomes  necessary  for  the  buyer  to  make  a 
loan  on  the  premises.  He  can  obtain  the  money  therefor  from 
a  private  individual  or  from  a  bank.  Private  parties  oftentimes 
desire  a  higher  rate  of  interest,  and  are  more  difficult  to  deal 
with,  than  is  a  bank.  A  national  bank  is  not  permitted  to  make 
loans  on  real  estate  security,  so  that  such  loans,  when  not 


76  HOW  TO  BUY  AND 

made  with  private  individuals,   must  be  made  with  savings 
banks,  State  banks  or  building  and  loan  associations. 

Sec.  96.  Savings  banks  and  building  and  loan  associations 
make  loans  in  a  systematic  manner.  The  first  step  for  the  bor- 
rower to  take  is  to  sign  an  application  for  a  loan.  (See  Forms 
Nos.  27  and  33.)  In  a  booklet  issued  by  a  savings  bank,  occurs 
this  sentence:  "You  do  the  bank  a  favor  when  you  ask  for  a 
loan  on  good  security."  The  application  blank,  when  filled  up 
by  the  proposed  borrower,  will  or  ought  to  contain  all  of  the 
facts  which  the  bank  requires  to  prepare  the  papers,  etc.  In 
an  application  blank,  or  a  personal  interview,  the  applicant 
should  not  fear  to  tell  the  whole  truth  and  it  should  be  told 
in  as  few  words  as  possible.  When  the  application  has  been 
filed,  the  bank  will  send  its  appraiser  to  value  the  property  and 
report  to  the  appraisal  or  loan  committee.  Real  estate  loans 
require  more  time  for  investigation  than  do  loans  made  on  cer- 
tificates of  stock,  bonds  and  other  collateral  securities.  The 
bank  officials  will  advise  the  applicant  when  the  committee 
meets  and  when  his  application  will  be  passed  upon,  and  will 
carefully  guide  the  applicant  through  the  necessary  steps  to 
perfect  the  loan,  if  granted.  One  of  these  steps  is  the  execu- 
tion of  a  mortgage  or  deed  of  trust.  In  making  his  application 
to  the  officers  of  the  bank,  the  applicant  should  do  so  in  a  dig- 
nified, business-like  way.  He  who  cringes,  and  pleads  for  fi- 
nancial favors,  creates  an  unfavorable  impression.  "The  man 
who  cries  when  he  comes  to  borrow,  will  cry  when  asked  to 
pay,"  said  Stephen  Girard,  one  of  the  early  bankers  of  America. 

Sec.  97.  The  bank  makes  no  charge  for  appraising  the 
property  nor  for  preparing  the  mortgage,  note,  etc.  Some 
banks  charge  for  the  acknowledgment ;  others  do  not.  The  ap- 
plicant must  pay  for  recording  the  mortgage  and  for  all  ex- 
penses connected  with  the  loan,  and  bring  down  the  certifi- 
cate of  title  to  show  the  property  vested  in  the  borrower,  sub- 
ject to  the  loan  to  the  bank  as  a  first  lien.  Some  building 
and  loan  associations  charge  an  admission  fee  of  $1.00  per 
share  for  each  $100  borrowed ;  an  appraisal  fee  for  city  prop- 
erty of  $3.00,  and  charge  for  the  recording  of  the  papers,  and 
an  attorney's  fee,  where  an  abstract  of  title  is  furnished  in- 
stead of  a  certificate  of  title.  Where  the  property  is  situate 


ESTATE  AT  A  PROFIT  77 

in  the  country,  there  must  be  added  the  expense  incurred  by 
the  appraiser  in  viewing  the  property. 

Sec.  98.  Buildings  loans  are  more  difficult  to  obtain  than 
are  loans  on  improved  or  unimproved  property,  as  there  may 
be  occasion  for  trouble  between  the  contractor  and  the  me- 
chanics, laborers  or  material  men  while  the  building  is  in  pro- 
cess of  erection.  In  applying  for  such  a  loan,  the  borrower 
must  submit  to  the  lender  all  plans,  specifications  and  bonds 
of  the  contractor  connected  with  the  building,  and,  in  some 
cases,  building  and  loan  associations  require  that  the  appraisal 
and  building  committee  of  such  association  shall  see  that  the 
work  is  properly  done  and  they  audit  the  bills  therefor,  and  see 
that  the  proper  completion  notice  is  filed  when  the  building 
is  completed.  (See  also  Chapter  on  Homes  and  Homesteads.) 

Sec.  99.  Some  banks  will  not  loan  on  "key  lots,"  (See 
Sec.  60)  nor  on  houses  of  less  than  four  rooms,  nor  on  "Cali- 
fornia" houses.  Before  buying,  it  would  be  well  for  the  in- 
tending borrower  to  ascertain  what  the  rules  are,  if  any,  in 
regard  to  loans  of  the  bank  fromi  which  he  intends  to  borrow. 
Banks  usually  will  not  loan  over  fifty  per  cent  of  the  value  of 
city  improved  property,  and  not  over  forty  per  cent  of  the 
value  of  desirable  vacant  city  property;  and  about  $100.00  to 
$150.00  per  acre  on  country  lands  worth  from  $700  to  $1000 
per  acre ;  the  values  in  each  case  being  fixed  by  the  appraiser 
of  the  bank. 

Sec.  loo.  If  the  application  is  granted,  the  borrower  is  re- 
quired to  execute  a  note  and  mortgage  in  form  required  by 
the  lender,  and  to  furnish,  at  expense  of  borrower,  a  certificate 
or  abstract  of  title,  and  a  transfer  of  the  policy  of  insurance, 
if  the  premises  are  insured,  and  have  a  "mortgage  clause" 
attached. 

Sec.  101.  The  mortgage,  the  note,  the  certificate  of  title 
or  abstract,  and  the  policy  of  insurance,  if  the  premises  are  im- 
proved, remain  with  the  lender  while  the  loan  is  in  force. 

Sec.  102.     Two  short-cut  rules  for  computing  interest : 

(i.)  Reduce  the  time  to  days.  Multiply  the  principal  by 
the  number  of  days,  and  for  5  per  cent  divide  by  72 ;  for  6  per 
cent,  by  60 ;  for  7  per  cent  by  52 ;  for  8  per  cent  by  45,  and  for 
9  per  cent  by  60.  Example :  What  is  the  interest  on  $5,000  for 


78  HOW  TO  BUY  AND 

65  days  at  6  per  cent.  Solution:  5000  times  65  equals  325,000; 
325,000  divided  by  60  equals  $54.17. 

(2.)  Reduce  the  time  to  days.  Place  the  amount,  the 
rate  and  the  time  in  days  above  the  line,  and  the  figures  3,  3,  4 
below,  thus: 

$5000        65        6% 

334 

Eliminate  factors  by  cancellation.  Then  multiply  together 
the  figures  above  the  line  and  divide  by  the  product  of  the 
figures  below  the  line. 

In  either  of  above  rules,  if  principal  is  in  even  dollars, 
point  off  three  decimal  places ;  if  in  dollars  and  cents,  point  off 
five  decimal  places;  the  result  will  be  the  amount  of  the  in- 
terest in  dollars,  or  in  dollars  and  cents,  as  the  case  may  be. 

One  of  the  above  methods  may  be  used  to  verify  the 
other,  or  to  verify  interest  figured  by  any  other  method. 

Sec.  103.  The  maker  of  a  note  may  reserve  the  right  to 
pay  it  off  at  any  time  before  maturity  by  paying  a  bonus  of 
interest.  This  may  be  stated  in  the  note  as  follows :  "I  hereby 
reserve  the  right  to  pay  this  note  at  any  time  before  maturity 
by  paying  the  principal,  accrued  interest,  and  thirty  days  ad- 
ditional interest  as  a  bonus." 

Sec.  104.  Where  a  mortgage  is  given  by  the  purchaser 
to  the  seller  as  a  part  of  the  purchase  price,  it  is  proper 
to  insert  in  the  mortgage  these  or  equivalent  words:  "This 
mortgage  is  given  to  secure  the  balance  of  the  purchase  price 
for  the  above  described  premises."  This  is  called  a  "purchase 
money  mortgage,"  and  imports  on  its  face  its  full  considera- 
tion, and  the  title  companies  will  pass  such  a  mortgage  even 
though  it  be  on  community  property  and  be  signed  by  the  hus- 
band only. 

iSec.  105.  Where  property  encumbered  by  a  mortgage  is 
sold  to  a  person  who  assumes  the  mortgage,  such  assumption 
by  the  purchaser  should  be  set  forth  in  the  deed  conveying  the 
property  in  express  words,  so  that  there  cannot  be  any  room 
for  misunderstanding.  (See  Form  No.  13-!-!.) 

Sec.  106.  The  borrower  should  be  very  punctual  in  pay- 
ing the  interest  on  his  loan.  Building  and  loan  associations 
require  payment  of  interest  and  a  payment  on  account  of  the 


REAL,  ESTATE  AT  A  PROFIT  79 

principal,  to  be  made  monthly;  but  whenever  he  can  do  so,  the 
borrower  should  make  his  interest  payable  quarterly.  If  made 
payable  annually,  or  semi-annually,  the  borrower  has  to  ac- 
cumulate and  keep  on  hand  monies  with  which  to  meet  the  in- 
terest for  too  long  a  time;  quarterly  payments  on  the  whole 
will  best  mieet  the  requirements  of  every  one.  Interest  is  not 
payable  in  advance,  but  for  time  past.  Banks,  as  a  rule,  notify 
borrowers  of  the  amount  and  date  when  interest  payments  be- 
come due.  (See  Form  No.  30.)  The  borrower  should  not  de- 
pend on  receiving  the  notice,  as  a  bank  will  occasionally  over- 
look sending  it  out ;  he  should  have  a  memorandum  of  the  ex- 
act amounts  and  precise  dates  when  the  several  interest  pay- 
ments will  fall  due  during  the  continuance  of  the  loan  and 
meet  such  payments  punctually  on  that  day  or  the  day  next 
preceding.  The  payments  of  interest,  and  of  principal,  are 
endorsed  on  the  note. 

Sec.  107.     Of  Mortgages. 

(i.)  A  mortgage  is  a  contract  by  which  a  specific  prop- 
erty is  hypothecated  for  the  future  performance  of  an  obliga- 
tion, without  the  necessity  of  change  of  possession. 

(2.)  Any  interest  in  real  property  which  is  capable  of 
being  transferred,  may  be  mortgaged. 

(3.)  A  mortgage  does  not  entitle  the  mortgagee  to  the 
possession  of  the  property,  unless  authorized  by  the  express 
terms  of  the  mortgage. 

5(4.)  A  mortgage  can  be  created,  renewed,  or  extended, 
only  by  a  written  instrument,  executed  with  the  formalities  re- 
quired in  the  case  of  a  deed. 

(5.)  A  mortgage  is  a  lien  upon  everything  that  would 
pass  by  a  conveyance  of  the  same  property.  In  California, 
mortgages  on  personal  property  are  limited  to  such  articles 
as  are  specified  in  the  Civil  Code,  growing  crops,  grapes  and 
fruit  being  among  the  properties  enumerated.  The  lien  on  a 
mortgage  on  a  growing  crop  continues  on  the  crop  after  sever- 
ance from  the  land,  whether  the  crop  remains  in  its  original 
state  or  is  converted  into  another  product,  so  long  as  the  same 
remains  on  the  land  of  the  mortgagor.  The  following  has 
been  held  to  be  a  good  and  sufficient  description  in  a  mortgage 
on  growing  crops : 

"All  of  the  crops  and  products  of  whatever  nature,  which 


80  HOW  TO  BUY  AND 

are  now  .standing  or  growing,  or  which  shall  or  may  hereafter 
at  any  time  be  sown,  planted,  cut  or  harvested  by  the  said 
party  of  the  first  part  during  the  continuance  of  this  mortgage, 
on  the  following  described  lands  and  premises,  situate,  lying 
and  being  in  the  County  of  Santa  Cruz,  State  of  California, 
bounded  and  particularly  described  as  follows,  to  wit :" 

(6.)  A  mortgage  of  personal  property,  in  California,  is 
void  as  against  creditors  of  the  mortgagor  and  subsequent  pur- 
chasers and  incumbrancers  of  the  property  in  good  faith  and 
for  value,  unless  such  mortgage  is  accompanied  by  the  affidavit 
of  all  the  parties  thereto  that  it  is  made  in  good  faith  and  with- 
out any  design  to  hinder,  delay  or  defraud  creditors,  and  is  ac- 
knowledged, certified  and  recorded  in  like  manner  as  a  deed. 
(See  Form  No.  38.)  A  personal  property  mortgage  must 
be  recorded  in  the  office  of  the  County  Recorder  of  the  county 
where  the  mortgagor  resides  at  the  time  of  making  the  mort- 
gage, and  if  the  property  is  situate  in  another  county,  also  in 
the  office  of  the  County  Recorder  of  that  county,  or  of  the 
county  to  which  such  property  is  removed. 

(7.)  Mortgages  are  executed,  acknowledged,  delivered 
and  recorded  the  same  as  deeds.  A  mortgage  should  be  re- 
corded the  same  day  the  mortgagee  receives  it.  If  there  is  a 
"homestead"  (See  Chapter  on  Homes  and  Homesteads)  on  the 
property,  and  it  is  owned  by  a  married  person,  it  cannot  be 
mortgaged  or  conveyed  unless  the  instrument  is  signed  and 
acknowledged  by  both  husband  and  wife. 

(8.)  A  mortgage  may  be  assigned.  The  holder  of  the 
mortgage  may  make  an  assignment  in  writing,  and  such  in- 
strument, when  recorded  in  like  manner  as  the  mortgage,  oper- 
ates as  notice  to  all  persons  subsequently  deriving  title  to  the 
mortgage  from  the  assignor.  (See  Form  No.  32.)  A  transfer 
of  the  note  carries  with  it  the  security,  as  the  mortgage  is  the 
incident  to  the  debt. 

(9.)  The  mortgagee  must  pay  the  taxes  on  the  mortgage 
under  the  California  law.  For  a  full  explanation  on  this  point 
see  Chapter  on  Escrows. 

(10.)  The  borrower  of  a  thing  for  use  must  bear  all  of 
its  expenses  during  the  loan ;  and  so  where  the  mortgaged 
premises  are  improved,  the  mortgagor  is  required  to  keep  the 


ESTATE)  AT  A  PROFIT  81 

premises  insured  for  the  benefit  of  the  mortgagee  as  the  in- 
terest of  the  latter  in  the  property  may  appear. 

(n.)  A  mortgage  which  has  been  recorded,  when  paid, 
may  be  discharged  of  record  in  one  of  two  ways,  namely :  By 
an  entry  on  the  margin  of  the  record  book,  signed  by  the  mort- 
gagee or  his  assignee,  acknowledging  satisfaction  of  the  mort- 
gage in  the  presence  of  the  County  Recorder,  or  by  an  instru- 
ment of  partial  release  (See  Form  29),  or  of  full  satisfaction 
(See  Form  No.  31),  either  of  which  must  be  recorded  at  length. 

(12.)  The  forms  of  mortgage  (See  No.  28)  in  use 
usually  provide  that  if  any  installment  of  interest  or  of 
principal  remains  unpaid  for  a  certain  time,  or  if  the  mortgagor 
makes  breach  of  any  condition  contained  in  the  mortgage,  the 
holder  of  the  mortgage  may,  at  his  option,  commence  suit  for 
the  foreclosure  of  the  mortgage  and  recovery  of  the  property. 
If  the  mortgage  is  not  renewed  or  extended  at  maturity,  and 
is  not  paid,  the  holder,  of  course,  may  commence  suit  for  fore-- 
closure. The  time  in  which  suit  may  be  commenced  after  de- 
fault or  maturity  varies  in  different  States.  In  California,  such 
suit  must  be  commenced  within  four  years.  If  not  commenced 
within  the  time  limited,  the  mortgage  "outlaws;"  that  is,  the 
statute  of  limitations  goes  into  effect,  and  no  action  can  then 
be  brought  to  foreclose  the  mortgage.  In  case  of  suit,  the  mort- 
gagee has  to  bear  the  costs  of  foreclosure.  If  suit  is  deter- 
mined in  favor  of  the  holder  of  the  mortgage,  a  sale  of  the 
premises  is  ordered  by  the  court;  the  officer  making  the  sale 
(usually  the  Sheriff)  must  give  the  purchaser  a  certificate  of 
sale,  and  file  a  duplicate  thereof  in  the  office  of  the  County  Re- 
corder. The  certificate  of  sale  can  be  assigned.  Sales  had  un- 
der powers  given  in  mortgages  or  trust  deeds  are  scrutinized 
with  great  care  by  the  courts,  .as  such  sales  are  harsh  methods, 
and  will  not  be  sustained  unless  conducted  in  all  fairness  and 
integrity.  One  action  only  can  be  maintained  for  the  recovery 
of  a  debt  or  enforcement  of  a  right  secured  by  mortgage  on 
real  estate  or  personal  property,  .and  such  action  must  first  ex- 
haust the  security,  and  if  that  is  not  sufficient  to  pay  the  debt, 
then  a  deficiency  judgment  may  be  entered  against  the  mort- 
gagor by  the  court.  Where  a  note  was  endorsed  originally  or 
by  way  of  transfer,  if  the  security  is  not  sufficient  to  extinguish 


82  HOW  TO  BUY   AND 

the  debt,  a  separate  suit  can  be  maintained  against  the  endorser 
for  the  deficiency. 

(13.)  All  property,  except  personal  property  and  leases, 
having  less  than  two  years  to  run,  may  be  redeemed,  in  Califor- 
nia, within  twelve  months  after  the  decree  of  foreclosure  has 
been  entered.  The  right  to  redeem  is  called  the  equity  of  re- 
demption and  may  be  exercised  by  any  one  who  has  an  equi- 
table or  legal  lien  upon  the  property.  The  redemptioner  must 
pay  the  purchaser  the  amount  paid  by  the  latter,  together  with 
one  per  cent  per  month  thereon  to  date  of  redemption,  and  as- 
sessments and  taxes  paid  by  such  purchaser,  and  interest 
thereon.  The  mortgagor  has  the  right  to  remain  in  possession 
of  the  mortgaged  premises,  if  he  is  occupying  same,  during  the 
foreclosure  proceedings  and  until  the  right  of  redemption  has 
been  exercised  or  has  expired. 

Sec.  108.     Of  Trust  Deeds, 

(i.)  A  trust  deed  is  a  conveyance  by  one  party,  called  the 
trustor,  to  a  second  party,  called  the  trustee,  as  security  for 
the  performance  by  the  first  party  of  an  obligation  in  favor 
of  a  third  party,  called  the  beneficiary.  Such  a  deed  authorizes 
the  second  party,  upon  default  of  the  first  party  to  meet  the 
conditions  of  the  deed,  to  sell  the  property  and  apply  the  pro- 
ceeds to  the  secured  obligation.  The  names  of  the  beneficiaries 
are  not  always  expressed  in  the  deed,  as  where  such  a  deed  is 
given  to  secure  corporate  bonds.  Such  a  deed  conveys  the 
legal  title  to  the  trustee,  to  enable  the  latter  to  convey  the  prop- 
erty in  the  event  it  is  sold  upon  the  default  of  the  trustor.  (See 
Form  No.  34.)  (When  the  secured  boligation  has  been  sat- 
isfied, the  property  is  re-conveyed  by  the  trustee  to  the  trus- 
tor. (See  Form  No.  35.) 

(2.)  Declarations  of  Trust  are  made  for  various  pur- 
poses, such  purposes  being  set  forth  at  length  in  the  declara- 
tion. (See  Subdivisions.) 

FORM  NO.  27— APPLICATION  FOR  A  LOAN— SAVINGS  BANK. 

APPLICATION   FOR  LOAN. 

I  do  hereby  apply  to  the  Security  Savings  Bank  of  Los  Angeles,  Cal., 
for  a  loan  of  Two  Thousand  Dollars  ($2,000)  for  a  term  of  three  years, 
at  6  per  cent  interest  per  annum,  to  be  paid  quarterly  from  the  date  of 
signing  note  and  mortgage. 

To  be  secured  by  a  first  mortgage  upon  the  following  described  real 


ESTATE  AT  A  PROFIT  83 

estate,  situated  in  the  City  of  Los  Angeles,  County  of  Los  Angeles,  State 
of  California,  to-wit:  Lot  376  of  the  Alexandre  Weill  Tract,  as  per  map 
recorded  in  Book  26,  page  85,  Miscellaneous  Records  of  Los  Angeles 
County,  having  a  frontage  of  50  feet  by  160  feet  in  depth,  situated  on  the 
west  side  of  Central  Street,  between  I4th  and  I5th  Streets,  House  No.  1402. 
For  the  purpose  of  securing  said  loan  I  hereby  make  the  following 
statements  and  answers :  Buildings  and  improvements  on  said  property 
are  one  8-room  house.  Cash  value  of  the  land  is  $3,000.  Value  of  build- 
ings is  $2,500.  Total  $5,500.  If  leased,  on  what  terms?  $35  per  month. 
Are  there  any  mortgages  or  other  liens  against  the  property?  If  so,  de- 
scribe them.  None.  In  whom  is  title  vested?  In  undersigned.  How 
long  have  you  owned  the  property?  •  Two  years.  Name  of  applicant  and 
wife.  M.  C.  Cuddeback,  unmarried.  Who  is  in  possession?  James  How- 
ard. Under  what  kind  of  an  agreement?  Lease  for  two  years  from  Janu- 
ary i,  1905.  Is  the  property  a  homestead?  No.  Give  date  of  com- 
pletion of  latest  improvement.  Two  years  since.  Has  notice  of  com- 
pletion of  improvement  been  recorded?  It  was. 

It  is  understood  by  me  that  the  taxes  referred  to  by  the  Constitution 
and  Revenue  Laws  of  the  State  of  California,  referring  to  the  payment  by 
mortgagees  of  taxes  assessed  against  them  as  owners  of  real  estate,  are 
only  those  general  taxes  assessed  and  collected  for  the  support  and  main- 
tenance of  government,  state,  county  and  city  or  town.  That  all  other 
taxes  and  assessments,  including  those  levied  or  assessed  for  the  opening, 
widening,  grading,  regrading  and  the  improvement  of  streets,  roads,  high- 
ways ;  for  the  construction  of  sidewalks,  sewers,  and  for  school  houses  and 
for  the  support  of  schools,  and  those  taxes  levied  by  irrigation  districts, 
are  properly  to  be  paid  by  me  and  not  by  the  mortgagee,  and  I  hereby  de- 
clare that  in  case  of  the  loan  being  applied  for,  being  made  by  me,  I  will 
pay  and  discharge  before  delinquency,  with  my  own  money,  and  without 
expectation  of  reimbursement,  all  special  taxes  and  assessments  as  here- 
inbefore mentioned  that  may  be  assessed  against  you  on  my  property,  ex- 
cept those  for  the  support  and  maintenance  of  state,  county  and  city  61? 
town  government. 

And  I  hereby  agree  to  furnish  a  complete  certificate  of  the  title  of  my 
property  acceptable  to  you  at  my  expense ;  also  to  pay  expense  of  acknowl- 
edgments and  recording,  and  to  permit  the  Title  Papers  to  remain  with  the 
Security  Savings  Bank  during  the  existence  of  the  loan.  I  also  agree  to 
have  the  property  insured  in  any  company  you  may  select  in  the  sum  of 
$2,500  and  deliver  to  you  the  policies. 

You  are  hereby  authorized  to  pav  all  liens  and  taxes  out  of  the  pro- 
ceeds of  the  loan. 

Dated,  April  2d,  1904. 

M.  C.  CUDDEBACK,        (Seal) 
Address,  1306  Santee  Street.      Telephone,  Home  1131. 

FORM  NO.  28— MORTGAGE  AND  MORTGAGE  NOTE. 
THIS  MORTGAGE,  Made  the  thirteenth  day  of  April,  in  the  year  of  our 
Lord,  One  Thousand  Nine  Hundred  and  Four,  by  M.  C.  Cuddeback,  an 


84  HOW  TO  BUY  AND  SEU, 

unmarried  man,  of  the  City  and  County  of  Los  Angeles,  State  of  Cali- 
fornia, Mortgagor,  to  the  Security  Savings  Bank,  a  corporation  duly 
organized  under  the  laws  of  the  State  of  California,  and  having  its 
place  of  business  at  the  City  of  Los  Angeles  (which  fact  is  hereby  ebc- 
pressly  admitted),  Mortgagee; 

WITNESSETH,  That  the  Mortgagor  hereby  mortgages  to  the  Mort- 
gagee, all  that  certain  real  property  situate  in  the  City  of  Los  Angeles, 
County  of  Los  Angeles,  State  of  California,  and  particularly  described  as 
follows : 

Lot  Three  Hundred  and  Seventy-six  (376),  of  the  Alexandre  Weill 
Tract,  in  the  City  of  Los  Angeles,  County  of  Los  Angeles,  State  of  Cali- 
fornia, as  per  map  recorded  in  Book  26,  Page  85,  Miscellaneous  Records 
of  said  County,  including  all  buildings  and  improvements  thereon,  or  that 
may  be  erected  thereon;  together  with  all  and  singular  the  tenements, 
hereditaments  and  appurtenances  thereunto  belonging  or  in  anywise  apper- 
taining, and  the  reversion  and  reversions,  remainder  and  remainders,  rents, 
issues  and  profits  thereof;  for  the  purpose  of  securing  the  promises  and  ob- 
ligations of  this  mortgage  and  the  payment  of  a  promissory  note  in  words 
and  figures  as  follows : 
$2,000.00.  Los  Angeles,  California,  April  13,  1904. 

Three  (3)  years  after  date,  and  for  value  received,  I  promise  to  pay 
to  the  Security  Savings  Bank,  or  order,  at  its  office  in  the  City 
of  Los  Angeles,  the  sum  of  Two  Thousand  ($2,000.00)  Dollars,  with 
interest  from  date  until  paid  at  the  rate  of  nine  (g%)  per  cent,  per  annum, 
payable  quarterly.  Should  the  interest  not  be  so  paid,  it  shall  become  a 
part  of  the  principal  and  thereafter  bear  like  interest  as  the  principal. 
Should  default  be  made  in  the  payment  of  any  installment  of  interest  when 
due,  then  the  whole  sum  of  principal  and  interest  shall  become  immedi- 
ately due  and  payable  at  the  option  of  the  holder  of  this  note.  Principal 
and  interest  payable  in  gold  coin  of  the  United  States.  This  note  is  se- 
cured by  a  mortgage  of  even  date  herewith. 

M.   C.   CUDDEBACK. 

The  Mortgagor  agrees  to  pay,  as  soon  as  due,  all  taxes,  assessments 
and  incumbrances  whatsoever,  which  may  be,  or  appear  to  be,  liens  upon 
said  property  or  any  part  thereof  (except  taxes  levied  or  assessed  upon 
this  mortgage  or  upon  the  money  secured  hereby),  and  to  keep  said  build- 
ings insured  against  fire,  to  the  amount  required  by,  and  in  such  insurance 
companies  as  may  be  satisfactory  to,  the  Mortgagee  and  to  assign 
the  policies  therefor  to  the  Mortgagee;  and  to  promptly  pay  or  settle  (or 
cause  to  be  removed  by  suit  or  otherwise)  all  adverse  claims  against  said 
property. 

In  case  said  taxes,  assessments  or  incumbrances  be  not  so  paid, 
or  said  buildings  so  insured  and  said  policies  so  assigned,  or  said  adverse 
claims  so  paid,  settled  or  removed,  then  the  Mortgagee,  being  hereby 
made  the  sole  judge  of  the  legality  thereof,  may  without  notice  to  the  mort- 
gagor, pay  such  taxes,  assessments  or  incumbrances,  obtain  such  policies 
of  insurance  in  its  own  name  as  Mortgagee,  and  pay  or  settle  any  or  al! 


ESTATE  AT  A  PROFIT  85 

such  adverse  claims  or  cause  the  same  to  be  removed  by  suit  or  otherwise. 
The  Mortgagor  agrees  to  keep  said  property  in  good  condition  and 
repair  and  to  permit  no  waste  thereof,  and  should  said  property,  or  any 
part  thereof,  require  any  inspection,  repair,  cultivation,  irrigation  or  pro- 
tection, other  than  that  provided  by  the  Mortgagor,  then  the  Mortgagee, 
being  hereby  made  the  sole  judge  of  the  necessity  therefor,  and  without 
notice  to  the  Mortgagor,  may  enter,  or  cause  entry  to  be  made,  upon  said 
property,  and  inspect,  repair,  cultivate,  irrigate  or  protect  said  property  as 
it  may  deem  necessary.  All  sums  expended  by  the  Mortgagee  in  doing 
any  of  the  things  above  authorized,  shall  be  secured  hereby  and  shall  be 
paid  to  the  Mortgagee  by  the  Mortgagor  in  said  gold  coin,  on  demand, 
together  with  interest  from  the  date  of  payment,  at  the  same  rate  of  inter- 
est (compounded  monthly,  until  repaid),  as  is  provided  to  be  paid  in  the 
t!ote  hereinbefore  set  out. 

In  the  event  of  a  loss  under  said  policies  of  fire  insurance,  the  amount 
collected  thereon,  if  any,  shall  be  credited  first  to  the  interest  due,  if  any, 
on  said  indebtedness,  and  the  remainder,  if  any,  shall  be  credited  on  the  prin- 
cipal sum,  and  interest  shall  thereupon  cease  on  the  amount  so  credited  on 
s^id  principal  sum. 

The  Mortgagor  nromises  to  pay  said  note  according  to  the  terms  and 
conditions  thereof;  and  in  case  of  default  in  the  payment  of  the  same,  or 
of  anv  installment  of  interest  thereon  when  due,  or  in  the  performance  of 
any  of  the  covenants  or  agreements  herein  contained  on  ^the  part  of  the 
Mortgagor,  the  whole  sum  of  money  then  secured  by  this  mortgage  shall 
become  immediately  due  and  payable  at  the  option  of  the  holder  of  said 
note  and  this  mortage  may  thereupon,  or  at  any  time  during  such  default, 
be  foreclosed,  and  the  filing  of  the  complaint  in  foreclosure  shall  be  con- 
clusive of  the  exercise  of  such  option  by  the  Mortgagee  without  any  other 
notice  thereof  to  said  Mortgagor. 

In  case  any  action  be  brought  to  foreclose  this  mortgage,  the  Mort- 
gagor agrees  to  pay  all  costs  and  expenses  thereof,  including  a  reasonable 
sum  to  be  fixed  by  the  Court,  as  attorney's  fees  whether  suit  progress  to 
judgment  or  not ;  also  such  sums  as  said  Mortgagee  may  pay  for  searching 
the  title  to  the  mortgaged  property  subsequent  to  the  date  of  record  of 
this  mortgage,  or  for  surveying  said  property  and  said  attorney's  fees,  and 
all  sums  so  paid  or  expended  shall  become  due  upon  filing  of  the  complaint, 
shall  be  secured  'hereby  and  shall  be  repaid  to  the  Mortgagee  in  said  gold 

.  •    •      TT-TI 

com. 

In  any  such  action  to  foreclose  this  mortgage  a  Receiver  shall,  upon 
application  of  the  plaintiff  therein,  and  without  notice  to  the  Mortgagor,  be 
appointed  bv  the  Court  to  take  charge  of  said  property,  to  receive  and  col- 
lect the  rents,  issues  and  profits  thereof,  and  apply  them  to  the  payment  of 
the  taxes  which  m?y  be  due  or  become  due  during  the  pendency  of  the 
action  and  until  sale  be  finally  made,  and  to  the  costs  and  commissions  of 
the  Receiver,  in  a  reasonable  sum  to  be  fixed  by  the  Court,  and  to  any  defi- 
ciency which  may  remain  after  the  property  shall  have  been  sold. 

It  is  also  agreed  that  should  this  mortgage  be  foreclosed,  then  in  the 


86  HOW  TO  BUY  AND  SELL 

decree  of  foreclosure  entered  in  such  action,  the  property  described  there- 
in may  be  ordered  sold  en  masse — or  as  one  lot  or  parcel — and  not  as  sev- 
eral parcels,  at  the  option  of  the  Mortgagee. 

The  Mortgagor  also  hereby  mortgages  the  property  hereinbefore 
described,  to  secure  every  promise  and  agreement  herein  contained,  direct 
or  conditional,  and  guarantees  and  affirms  that  said  property  is  now  free 
from  any  secret  equities,  trusts  or  incumbrances  made  or  suffered  by,  or 
known  to,  said  Mortgagor. 

Every  stipulation,  agreement  and  appointment  herein  in  favor  of 
said  Mortgagee,  shall  apply  and  inure  to  the  benefit  of  its  successors  or 
assigns. 

WITNESS  the  hand  and  seal  of  said  Mortgagor  the  day  and  year  first 
above  written. 

M.  C.  CUDDEBACK,        (Seal) 

(Acknowledgment.) 
FORM  NO.  20— PARTIAL  RELEASE  OF  MORTGAGE. 

PARTIAL  RELEASE   OF    MORTGAGE. 

IN  CONSIDERATION  of  the  payment  of  Eight  Hundred  ($800.00)  Dol- 
lars, Gold  Coin,  part  of  the  money  secured  by  a  certain  mortgage,  dated 
April  I3th,  1904,  made  by  M.  C.  Cuddeback,  of  the  Citv  and  County  of 
Los  Angeles,  State  of  California,  to  the  Security  Savings  Bank,  a 
cornoration,  duly  organized  under  the  laws  of  the  State  of  California,  and 
having  its  place  of  business  in  the  City  of  Los  Angeles,  and  recorded  on 
the  21  st  dav  of  April,  1904,  in  Book  1010  of  Mortgages,  at  page  234,  Los 
Angeles  County  Records,  the  following  described  property  is  hereby  re- 
leased and  discharged  from  the  lien  of  said  mortgage,  to-wit :  Lot  Three 
Hundred  and  Seventy-six  (376),  of  the  Alexandre  Weill  Tract,  in  the  City 
of  Los  Angeles,  County  of  Los  Angeles,  State  of  California,  as  per  map 
recorded  in  Book  26,  page  85,  Miscellaneous  Records  of  said  County.  And 
the  rest  of  said  land  in  said  mortgage  specified  remaining  as  security  to 
the  said  Mortgagee  as  heretofore. 

IN  WITNESS  WHEREOF,  The   said   SECURITY   SAVINGS   BANK 
has  caused  these  presents  to  be  duly  signed  by  its  Vice-President  and  its 
Secretary,  and  has  caused  its  corporate  seal  to  be  hereunto  affixed  this 
I5th  dav  of  September,  1904. 
(Corporate  Seal)  SECURITY  SAVINGS  BANK. 

By    Vice-President. 

And    Secretary. 

(Corporate  Acknowledgment.) 

FORM  NO.  30— INTEREST  NOTICE. 

SECURITY    SAVINGS  BANK. 

Los  Angeles,  Cal.,  July  3d,  1904 
M.  C.  Cuddeback,  Esq.,  1306  Santee  Street,  City. 

Dear  Sir :— There  will  be  due  on  July  13,  1904,  interest  to  the  amount 


REAL  ESTATE  AT  A  PROFIT  87 

of  $30  on  your  note  in  the  sum  of  $2,000,  dated  April  13,  1904,  in  favor  of 
this  bank.      Please  bring  this  notice  with  you. 

Yours  respectfully, 
No.  3570  SECURITY  SAVINGS  BANK. 

FORM   NO.   31— FULL   SATISFACTION   OF   MORTGAGE. 

KNOW  ALL  MEN  BY  THESE  PRESENTS  :  That  M.  T.  Brooks  does  hereby 
certify  and  declare  that  a  certain  mortgage,  bearing  date  the  3d  day  of 
March,  1904,  made  and  executed  by  Amos  Judd,  the  party  of  the  first  part 
(therein,  to  M.  T.  Brooks,  the  party  of  the  second  part  therein,  and  re- 
corded in  the  office  of  the  County  Recorder  of  the  County  of  Orainge, 
State  of  California,  in  Book  44  of  Mortgages,  at  page  123,  on  the  3d  day 
of  March,  1904,  together  with  the  debt  thereby  secured,  is  fully  paid,  sat- 
isfied and  discharged. 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  seal  the  2d 
day  of  March,  one  thousand  nine  hundred  and  five. 

M.  T.  BROOKS.       (Seal) 
(Acknowledgment.) 

FORM  NO.  32— ASSIGNMENT  OF  MORTGAGE. 

KNOW  ALL  MEN  BY  THESE  PRESENTS:  That  E.  J.  Troxler,  of  the 
County  of  Orange,  State  of  California,  the  party  of  the  first  part,  for  and 
in  consideration  of  the  sum  of  Ten  Dollars,  Gold  Coin  of  the  United  States 
of  America,  to  him  in  hand  paid  by  Oscar  A.  Taylor,  of  the  County  and 
State  aforesaid,  the  party  of  the  second  part,  the  receipt  whereof  is  here- 
by acknowledged,  does  by  these  presents,  grant,  bargain,  sell,  assign, 
transfer  and  set  over,  unto  the  said  party  of  the  second  part,  a  certain 
Indenture  of  Mortgage,  bearing  date  the  I2th  day  of  June,  one  thousand 
nine  'hundred  and  four,  made  and  executed  by  George  W.  Young,  Mort- 
gagor, to  said  E.  J.  Troxler,  Mortgagee,  and  recorded  on  the  I3th  day  of 
June,  1004,  in  Book  46  of  Mortgages,  at  page  21,  in  the  office  of  the  County 
Recorder  of  the  County  of  Orange,  State  of  California,  and  securing  the 
payment  of  one  certain  promissory  note  (a  copy  of  which  is  set  forth  in 
said  mortgage)  in  the  sum  of  $1,000,  bearin^  date  the  said  I2th  day  of 
June,  1904,  and  payable  two  years  after  date  with  interest  at  rate  of  g% 
per  annum,  together  with  the  note  therein  described,  and  the  money  due, 
and  to  grow  due  thereon,  with  the  interest. 

To  have  and  to  hold  the  same  unto  the  said  party  of  the  second  part, 
and  to  his  executors,  administrators  and  assigns,  for  his  and  their  use 
ana  benefit;  subject  only  to  the  proviso  in  the  said  Indenture  of  Mort- 
gage mentioned.  And  the  said  party  of  the  first  part  does  hereby  make, 
constitute  and  appoint  the  said  party  of  the  second  part  his  true  and  law- 
ful attorney,  irrevocable,  in  his  name  or  otherwise  but  at  the  proper  costs 
and  charges  of  the  said  party  of  the  second  part,  to  have,  use  and  take  all 
lawful  ways  and  means  for  the  recovery  of  the  said  money  and  interest; 
and  in  case  of  payment,  to  discharge  the  same  as  fully  as  the  said  party 
of  the  first  part  might  or  could  do  if  these  presents  were  not  made. 

IN  WITNESS  WHEREOF,  The  said  party  of  the  first  part  has  hereunto 


88  HOW  TO  BUY  AND 

set  his  hand  and  seal  the  2Oth  day  of  November,  in  the  year  of  our  Lord, 
one  thousand  nine  hundred  and  four. 

E.  J.  TROXLER.       (Seal) 
Signed,  sealed  and  delivered  in  the  presence  of 


(Acknowledgment. ) 

FORM   NO   33— APPLICATION   FOR   A   LOAN— BUILDING   AND 

LOAN  ASSOCIATION. 

LOAN  NO 

To  the  Board  of  Directors  of  the  State  Mutual  Building  and  Loan  Asso^ 

elation,  of  Los  Angeles,  California: 

GENTLEMEN: — I   desire  to  obtain  from  your  Association  a  loan  of 

Fifteen  Hundred  Dollars  upon  stock  of  the  Association,  secured  by  first 

mortgage  or  deed  of  trust  upon  real  estate  hereinafter  described,  situated 

in  the  City  of  Los  Angeles,  County  of  Los  Angeles,  State  of  California: 

(Here  give  description  of  Property  by  Lot  and  Block,  etc.) 

Lot  378  of  the   Alexandre   Weill   Tract.    Title  now   vested  in  me. 

Address Present   incumbrance   and   amount?    $2000.     Interest   on 

same  paid  to  what,  date?  June  15,  1903.  For  what  purpose  will  this 
money  be  used?  To  retire  present  loan.  Has  a  declaration  of  home- 
stead been  made?  No.  Occupation,  Capitalist.  Age Married, 

No.  Full  name  of  wife  or  husband.  (When  application  made  by  wife 
give  husband's  name,  occupation  and  age  here.)  How  much  per  month 

do  you  wish  to  pa"  on  this  loan?    $ No.  Shares Is  your 

financial  condition  such  that  you  can  make  the  required  monthly  pay 
ments?  Yes.  From  what  source  does  Applicant  expect  to  receive  money 
to  meet  monthly  payments  of  dues?  From  rentals.  Is  any  one  other 
than  Applicant  in  possession  of  any  part  of  the  premises?  Yes.  If  so, 
give  name,  and  state  by  what  right  such  person  is  in  possession.  James 
Boyd ;  under  written  lease. 

FOR   CITY   OR   TOWN   PROPERTY. 

On  what  street?  Sixth  Street.  Between  Gladys  and  Crocker.  Size 
of  ground,  60x125.  Street  number  of  building?  723.  Do  you  occupy 
the  premises?  No.  Is  it  rented?  Yes.  How  much  per  month?  $80. 
What  would  it  rent  for  per  month?  Distance  from  business  center?  Six 
blocks.  Describe  surroundings  (vis:  business  houses,  residences,  etc.) 
Business  and  residences.  Is  the  street  graded  and  macadamized,  or 
paved?  Not  paved.  Is  the  town  incorporated?  Yes.  Is  the  property 
in  the  corporate  limits?  Yes.  Distance  to  street  car?  On  line.  Dis- 
tance to  railway  depot?  Five  blocks.  Give  any  further  particulars  as 

specified  above.     Value  of  land  $3000.     Improvements,  to  go  on  $ 

Improvements,  now  on,  $3500.  Total,  $6500.  Is  any  building  in  pro- 
cess of  erection?  No.  Is  any  contracted  for?  No.  What  is  the  con- 
tract price?  $ What  amount  of  insurance  will  you  carry?  $3000. 

House  now  on  (or  to  go  on) stories rooms.     Number  of  rooms 

or  other  improvements   to  be  added  to  present  house?     None.     Size   of 


R£AL  ESTATE  AT  A  PROFIT 


89 


house?    40x65.     How  finished  inside?     Pine.     Any  barn?     No.     Size  of 

barn For  what  purpose  is  the  property  used?     Apartments.  What 

is  the  water  supply?     City  water. 


J  I 


DIAGRAM  or  LOCATION. 

NORTH. 


I  L 


gtrenl 

o 

g 

03 

K 

h 

ID 

w 

00 

K 

H 

ia 

03 

i 

Stroot 

——  ^ 

t 

•••• 

Mark  the  lot  on  this 
plat  in  reference  to  the 
direction  in  which  it 
fronts,  and  the  names  of 
the  streets  which  sur- 
round the  block. 


SOUTH. 


ir 


I  hereby  agree  to  assign  to  this  Association  one  or  more  shares  of 
its  capital  stock  for  every  One  Hundred  Dollars  I  borrow,  and  I  will 
furnish  at  my  own  expense  a  complete  and  acceptable  Abstract,  or  Certifi- 
cate of  Title,  to  the  property,  and  will  pay  all  necessary  expenses  con- 
nected with  the  loan  (including  the  charges  of  counsel  for  examining  title 
if  an  abstract  is  furnished),  and  as  long  as  I  have  the  loan  I  will  carry 
fire  insurance  of  such  an  amount  and  in  such  companies  as  is  required 
by  the  association,  with  the  clause  attached,  "Loss  if  any  payable  to  them 
as  their  interest  may  appear,"  and  if  by  reason  of  any  defect  in  the  title, 
or  change  of  circumstances,  this  loan  is  not  taken  by  me  after  this  appli- 
cation is  accepted,  I  will  pay  the  Association  the  amount  of  the  Appraisal 
Fee,  and  any  money  expended  on  my  account.  I  FURTHER  DECLARE  THAT 
THE  ANSWERS  WRITTEN  IN  THIS  APPLICATION  ARE  TRUE. 

(Signed)  ELIZA  DONOVAN, 

918  W.  23d  Street, 

Los  Angeles,  Cal. 
Dated,  June  3d,  1903. 

To  AGENTS  OR  APPLICANTS  :  The  Appraisal  Fee  should  be  paid  in 
advance  and  handed  with  this  application  to  your  Appraisal  Committee. 

REPORT   OF   APPRAISAL  COMMITTEE. 

(Please  answer  all  Questions;  ansivers  ivill  be  strictly  confidential.) 
(Appraiser  will   return  this   application   direct   to  the   Home   Office,    141 

South  Broadway,  Los  Angeles,  Cal.) 

Having  examined  all  the  property  herein  described,  we  estimate  the 
value  as  follows: 


90  HOW  TO  BUY  AND  SELL 

Ground        -  $ 

Buildings  now  on  property  $ 

Other  improvements  consisting  of $ 

Buildings  to  be  erected  or  improvements  to  go  on $ 

From  what  source  are  damages  to  be  apprehended  ? 

To  what  extent  may  depreciation  of  value  be  expected  ? 

Is  property  in  the  vicinity  selling? At  what  price? 

Is  this  saleable  property  ? 

Distance  from  business  center  ? 

WHAT  is  APPLICANT'S  REPUTATION  FOR  PAYING  His  DEBTS  ? 

Can  applicant  meet  the  required  monthly  payments  ? '. 

Has  applicant  intemperate  or  other  bad  habits  ? 

Of  what  race  is  applicant? 

Condition  of  improvements 

Is  the  property  in  a  good  location  ? 

What  would  it  rent  for  per  month  ? 

For  what  amount  would  you  recommend  a  loan  ?. . .; 

REMARKS. 

[Appraisal  Committee  cannot  be  too  particular  in  giving  us  the  full- 
est data  not  only  as  to  the  material,  but  also  as  to  the  moral  risk  of 
a  loan.  We  do  not  want  to  make  any  loans,  no  matter  how  good  the  se- 
curity, where  there  is  any  probability  of  our  having  ultimately  to  take  the 
property.  Please  give  us  here  any  information,  not  covered  by  the  above, 
which  may  be  useful  to  us  in  considering  the  application.] 
HAS  THE  APPRAISAL  FEE  BEEN  PAID  ? 


Committee. 
Date 190 

FORM  NO.  34— DEED  OF  TRUST  TO  SECURE  NOTE. 

THIS  DEED  OF  TRUST,  Made  this  loth  day  of  June,  Nineteen  Hundred 
and  Three,  between  Eliza  Donovan,  an  unmarried  woman,  of  Los  Angeles, 
California,  the  party  of  the  first  part,  and  the  Title  Insurance  &  Trust 
Company,  a  corporation,  party  of  the  second  part,  and  the  State  Mutual 
Building  and  Loan  Association,  a  corporation,  partv  of  the  third  part. 

WITNESSETH  :  That,  whereas,  the  said  first  party  has  borrowed  of 
the  said  third  party  certain  moneys  in  Gold  Coin  of  the  United  States 
and  has  agreed  to  repay  the  same  with  interest  in  the  manner  and  at  the 
time  mentioned  in  that  certain  promissory  note  of  which  the  following  is 
a  copy,  to-wit: 
$1300  Los  ANGELES,  CAL.,  June  10,  1903. 

On  or  before  nine  years  after  date,  without  grace,  for  value  received, 
I  promise  to  pay  to  the  State  Mutual  Building  and  Loan  Association,  a 
corporation,  or  order,  at  its  office  in  the  City  of  Los  Angeles,  County  of 
Los  Angeles,  State  of  California,  the  sum  of  Thirteen  Hundred  Dollars, 


REAL  ESTATE  AT  A  PROFIT  91 

with  interest  thereon  from  the  date  hereof,  at  the  rate  of  twelve  per 
cent,  per  annum,  and  in  addition  thereto  the  sum  of  $7.80  monthly  dues; 
all  of  said  sum  of  interest  and  dues  to  be  paid  monthly  on  the  first  day 
of  each  and  every  month,  from  the  date  hereof;  and  in  default  ot  any  of 
such  payments  on  or  before  the  tenth  day  of  the  month  in  which  the  same 
becomes  due,  I  agree  to  pay  the  sum  of  $1.30  for  each  month  of  such 
delinquency,  as  a  fine;  and  should  interest  and  dues  not  be  paid  monthly, 
then  the  whole  sum  of  principal,  interest,  dues  and  such  fines  shall  be- 
come immediately  due  and  payable  at  the  option  of  the  holder  of  this 
note.  All  of  such  payments  to  be  made  in  Gold  Coin  of  the  United  States. 
This  note  is  secured  by  a  Deed  of  Trust  of  even  date  herewith. 

ELIZA  DONOVAN. 

Now,  THEREFORE,  THIS  INDENTURE  WITNESSETH  :  That  the  said 
party  of  the  first  part,  in  consideration  of  the  aforesaid  indebtedness  to 
the  partv  of  the  third  part  and  of  One  Dollar  to  her  in  hand  paid  by  the 
narty  of  the  second  part,  the  receipt  whereof  is  hereby  acknowledged; 
and  for  the  purpose  of  securing  the  payment  of  said  promissory  note, 
and  of  any  sum  or  sums  of  money,  with  interest  thereon,  that  may  be  paid 
or  advanced  by,  or  may  otherwise  be  due  to,  the  party  of  the  second  or 
third  p^rt  under  the  provisions  of  this  Instrument,  does  by  these  presents 
grant,  bargain,  sell,  convey  and  confirm  unto  the  party  of  the  second  part, 
and  to  its  successors  and  assigns,  that  piece  or  parcel  of  land  situate 
in  the  City  of  Los  Angeles,  County  of  Los  Angeles,  State  of  California, 
described  as  follows: 

Lot  Three  Hundred  Seventy-eight  (378)  of  the  Alexandra  W«ill 
Tract,  as  per  map  recorded  in  Book  26,  pages  85  and  86,  Miscellaneous 
Records  of  said  County. 

To  HAVE  AND  TO  HOLD  the  same  with  all  appurtenances  to  the  party 
of  the  second  part  and  to  its  successors  and  assigns,  upon  the  Trusts 
and  confidences  hereinafter  expressed,  to-wit : 

FIRSTLY. — During  the  continuance  of  these  Trusts,  the  party  of  the 
third  part  and  the  party  of  the  second  part,  their  successors  or  assigns,  are 
hereby  authorized  to  pay  without  previous  notice  all  liens  or  incumbranoes 
now  subsisting,  or  that  may  hereafter  subsist,  upon  said  premises,  except 
taxes  or  assessments  on  this  Trust  Deed  or  the  money  secured  hereby, 
which  may  in  their  judgment  affect  said  premises  or  these  trusts,  at  such 
time  as  in  their  judgment  they  may  deem  best  or  in  their  discretion  for 
the  benefit  and  at  the  expense  of  said  party  of  the  first  part ;  to  contest 
the  payments  of  such  liens  or  incumbrances,  and  to  institute  or  deflend 
any  suit  or  proceeding  that  they  may  consider  proper  to  protect  the  title 
to  said  premises ;  and  insurance  shall  be  maintained  on  the  buildings  on 
the  premises  to  the  satisfaction  of  the  party  of  the  third  part  at  the" 
expense  of  the  first  party;  and  these  Trusts  shall  be  and  continue  as 
security  to  the  parties  of  the  second  or  third  part,  or  their  assigns,  for1 
the  repayment,  in  Gold  Coin  of  the  United  States,  of  thie  money  so  bor- 
rowed by  the  said  party  of  the  first  part,  and  the  interest  thereon,  and  of 
all  amounts  :so  paid  out  and  costs  and  expenses  incurred  as  aforesaid, 


92  HOW  TO  BUY  AND 

whether  paid  by  the  party  of  the  second  or  third  part,  which  shall  be 
repaid  on  demand,  and  if  not  so  paid,  shall  bear  interest  at  the  rate  of 
two  per  cent,  per  month  thereafter  until  paid. 

SECONDLY. — In  case  the  said  party  of  the  first  part  shall  well  and 
truly  pay,  or  cause  to  be  paid,  at  maturity,  in  Gold  Coin,  as  aforesaid,  all 
sums  of  money  so  borrowed,  as  aforesaid,  and  the  interest  thereon,  and 
shall  upon  demand  repay  all  other  moneys  secured  or  intended  to  be  se- 
cured hereby,  then  the  party  of  the  second  part,  its  successors  and  as- 
signs, shall  reconvey  all  the  estate  in  the  premises  aforesaid  granted  by 
this  instrument  unto  said  Eliza  Donovan,  her  heirs  or  assigns,  at  her 
request  and  cost. 

THIRDLY. — If  default  be  made  in  the  paymjent  of  any  of  the  sums 
secured  by  this  Trust  Deed  when  due,  by  the  terms  of  said  promissory 
note  or  this  instrument,  then  the  whole  of  said  sums  shall  become  imme- 
diately du«e  and  payable  at  the  option  of  said  third  party,  its  successors 
or  assigns.  And  the  said  second  party,  when  notified  so  to  do  by  said 
third  party,  shall  proceed  at  once  to  advertise  and  sell  said  property  at 
public  auction  to  pay  the  several  sums  hereby  secured  and  expense  of 
sale,  including  Fifty  Dollars,  counsel  fees.  Notice  of  the  time  and  place 
of  such  sale,  with  a  description  of  the  property  to  be  sold,  shall  be  pub- 
lished at  least  once  each  week  for  four  successive  weeks  in  some  news- 
paper published  in  the  City  of  Los  Angeles,  California,  at  which  s^id 
city  such  sal'e  shall  be  made.  If  the  property  to  be  sold  is  situated  in 
any  county  other  than  Los  Angeles,  then  a  similar  notice  shall  also  be 
published  in  some  newspaper  in  the  county  where  said  property  is  situated. 
Said  sale  may  be  postponed  from  time  to  time  by  publication,  and  on  the 
day  of  sate  so  advertised  or  any  day  to  which  the  same  may  be  postponed, 
said  second  party  shall  sell  the  property  so  advertised  at  public  auction 
to  the  highest  bidder  for  cash,  Gold  Coin  of  the  United  States,  and  any 
party  hereto,  their  successors  or  assigns,  may  purchase  at  such  sale. 
And  the  said  second  party,  after  paynrent  to  it  of  all  the  sum  so  bid  at 
such  sale,  shall  execute  and  deliver  to  the  purchaser,  his  heirs  or  assigns, 
a  Deed  of  Grant,  Bargain  and  Sale,  conveying  to  him  the  above  granted 
premises,  and  out  of  tine  proceeds  thereof  shall  pay,  first,  the  expenses 
of  making  such  sale  including  $50.00  counsel  fees;  next,  shall  nay  said 
third  party  the  entire  sum  due  it  at  the  time  of  such  sale,  if  said  proceeds 
be  sufficient,  and  lastly,  any  surplus  remaining  shall  be  paid  to  said  first 
party,  her  heirs  or  assigns. 

And  in  the  event  of  the  sale  of  said  premises  or  any  part  thereof, 
and  the  execution  of  a  deed  or  deeds  thereof  under  these  Trusts,  then 
the  recitals  therein  of  default,  publication,  sale  and  receipt  of  the  Durchase 
money,  shall  be  conclusive  proof  of  such  default  and  the  due  publication 
of  such  notice  of  the  sale  to  the  highest  bidder,  receipt  of  the  purchase 
money  and  execution  of  the  deed  to  the  purchaser,  and  any  such  deed  or 
deeds  with  such  recitals  therein  shall  be  effectual  and  conclusive  against 
the  said  party  of  the  first  part,  her  heirs  or  assigns,  and  all  other  persons ; 
and  the  receipt  for  the  purchase  moniey  contained  in  any  deeds  executed 


REAL,  ESTATE  AT  A  PROFIT  93 

to  the  purchaser,  as  aforesaid,  shall  be  a  sufficient  discharge  to  such  pur- 
chaser, from  all  obligation  to  see  to  the  proper  application  of  the  pur- 
chase money,  according  to  the  Trusts  aforesaid,  and  such  purchaser,  on 
the  production  of  such  deed,  shall  be  entitled  to  the  immediate  possession 
of  said  premises. 

THIS  DEED  OF  TRUST,  in  all  its  parts  applies  to  and  binds  the  heirs, 
administrators,  executors,  successors  and  assigns  of  all  and  each  of  the 
parties  hereto. 

IN  WITNESS  WHEREOF,  the  party  of  the  first  part  has  hereunto  set 
her  hand  and  seal  the  day  and  year  first  above  written. 

ELIZA  DONOVAN.      (Seal) 
The  foregoing  trust  is  hereby  accepted. 

TITLE  INSURANCE  &  TRUST  COMPANY. 
(Seal)  O.  P.  CLARK,  Secretary. 

State  of  California,  County  of  Los  Angeles,  ss. 

On  this  loth  day  of  June,  in  the  year  of  our  Lord  one  thousand  nine 
hundred  and  three,  before  me,  Samuel  Bristow,  a  Notary  Public  in  and 
for  the  County  of  Los  Angeles,  State  of  California,  residing  therein,  duly 
commissioned  and  sworn,  personally  appeared  Eliza  Donovan,  known  to 
me  to  be  the  person  described  in  and  whose  name  is  subscribed  to  the 
foregoing  instrument,  and  she  acknowledged  to  me  that  she  executed  the 
same. 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  affixed  my 
official  seal  the  day  and  year  in  this  certificate  first  above  written. 
(Seal)  SAMUEL  BRISTOW, 

Notary  Public  in  and  for  Los\  Angeles  County,  State  of  California. 
(Endorsement.) 

DEED  OF  TRUST;  154;  compared;  Eliza  Donovan  to  Title  Insurance 
and  Trust  Company,  in  trust  for  State  Mutual  Building  and  Loan  Asso- 
ciation. Dated  June  10,  1903. 

Recorded  at  request  of  Grantee,  June  10,  1903,  at  43  minutes  past 
i  p.  m.,  in  Book  1802,  page  239,  of  Trust  Deeds,  Los  Angeles  County 
Records.  Calvin  Hartwell,  County  Recorder:  by  R.  L.  Hazen,  Deputy. 
Fees  $2.10. 

FORM  NO  35— RECONVEYANCE  OF  TRUST  PROPERTY. 

THIS  INDENTURE,  Made  this  4th  day  of  February,  A.  D.  1906,  wit- 
nesseth:  That,  whereas,  the  promissory  note,  for  the  sum  of  Thirteen 
Hundred  ($1300)  Dollars,  with  interest,  mentioned  as  secured  by  that 
certain  Deed  of  Trust  made  by  Eliza  Donovan,  an  unmarried  woman,  to 
the  Title  Insurance  and  Trust  Company,  a  Corporation  organized  and 
existing  under  the  laws  of  the  State  of  California,  and  having  its  orincipal 
place  of  business  at  the  City  of  Los  Angeles,  County  of  Los  Angeles, 
State  of  California,  as  second  party,  which  said  Deed  of  Trust  is  dated 
the  loth  day  of  June,  1903,  and  recorded  in  the  office  of  the  County  Re- 
corder of  the  County  of  Los  Angeles,  State  of  California,  on  the  loth  day 
of  June,  1903,  in  Book  1802,  page  239  et  seq.  of  Trust  Deeds,  together 


94  HOW    TO   BUY   AND    SEU, 

with   all  other  sums  and  indebtedness   secured  by   said   Deed  of  Trust, 
have  been  fully  paid  and  satisfied. 

Now,  THEREFORE,  in  consideration  of  such  paymentj  and  also  the  sum 
of  One  Dollar,  the  receipt  whereof  is  hereby  acknowledged,  the  said  Title 
Insurance  and  Trust  Company  aforesaid  does  hereby  remise,  release  and 
reconvey,  without  warranty,  unto  Eliza  Donovan,  her  heirs  and  assigns, 
all  the  estate  in  the  premises  described  in  said  Deed  of  Trust  to  siaid 
Title  Insurance  and  Trust  Company  by  said  Deed  of  Trust  granted,  and 
now  held  by  said  Title  Insurance  and  Trust  Company,  reference  being 
hereby  made  to  said  Deed  of  Trust  and  the  said  record  thereof  for  a  par- 
ticular description  of  said  premises. 

To  HAVE  AND  TO  HOLD  the  same,  without  warranty,  unto  the  said 
Eliza  Donovan,  her  heirs  and  assigns  forever. 

IN  WITNESS  WHEREOF,  said  Title  Insurance  and  Trust  Company  has 
caused  these  presents  to  be  duly  signed  by  its  President  and  attested  by 
its  Secretary  under  its  corporate  seal,  the  day  and  year  first  above  men- 
tioned. 

TITLE  INSURANCE  AND  TRUST  COMPANY. 

(Corporate  Seal)  By President. 

Attest Secretary. 

(Acknowledgment.) 

FORM  NO.  36— AGREEMENT  TO  EXTEND  MORTGAGE  AND  IN- 
CREASE RATE  OF  INTEREST. 

THIS  AGREEMENT,  made  in  duplicate,  this  second  day  of  March,  1904, 
between  E.  J.  Blair,  of  the  County  of  Los  Angeles,  State  of  California, 
the  party  of  the  first  part,  and  M.  T.  Brooks,  of  the  County  and  State 
aforesaid ; 

WHEREAS,  Said  party  of  the  first  part  holds  a  certain  mortgage,  dated 
March  3d,  1903,  and  recorded  in  the  office  of  the  County  Recorder  of  the 
County  of  Orange,  in  Book  44  of  Mortgages,  at  page  123,  as  security  for 
a  certain  promissory  note  in  the  sum  of  $1000,  bearing  date  March  3d; 
1903,  and  payable  one  year  after  date  with  interest  at  the  rate  of  9  per 
cent,  per  annum,  payable  quarterly,  a  copy  of  which  said  note  is  set  out 
in  said  mortgage ;  and, 

WHEREAS,  no  partial  payments  have  been  made  on  the  principal  of 
said  note,  the  interest  thereon  has  been  paid  in  full  to  date,  and  said  note 
has  by  its  terms  become  due  and  payable ;  and 

WHEREAS,  Said  party  of  the  first  part  is  willing  to  extend  the  time 
for  the  payment  of  said  note  for  the  further  term  of  six  months,  provided 
said  party  of  the  second  part  shall  pay  interest  thereon  at  the  rate  of 
10  per  cent,  per  annum  from  this  date  until  paid,  payable  quarterly  as  in 
said  note  provided: 

Now  THEREFORE,  This  Agreement  Witnesseth :  In  consideration  of 
tihe  premises,  and  of  one  dollar  by  each  to  the  other  in  hand  paid,  thd 
receipt  whereof  is  hereby  acknowledged,  the  parties  hereto  do  hereby  mu- 
tually covenant  and  agree  that  the  time  for  the  payment  of  said  note 
shall  be  and  is  hereby  extended  to  September  3d,  1904,  and  that  said  note 


REAL  ESTATE  AT  A  PROFIT  95 

shall  bear  interest  from  and  after  this  date  until  paid,  at  the  rate  of  ten 
(10)  per  cent,  per  annum,  payable  quarterly,  as  in  said  note  provided; 
and  said  note  and  mortgage  are  hereby  ratified  and  confirmed  and  are 
to  continue  in  full  force  and  effect,  except  as  modified  by  this  agreement. 
IN  WITNESS  WHEREOF,  the  parties  hereto  have  hereunto  set  then 
hands  and  seals  the  day  and  year  first  above  written. 

E.  J.  BLAIR,          (Seal) 
M.  T.  BROOKS.      (Seal) 
(  Acknowledgment. ) 

FORM  NO.  37— INSTALLMENT  NOTE. 
$2000.00.  Los  ANGELES,  CAL.,  February  10,  1905. 

On  February  loth,  1906,  at  12  o'clock  noon  of  said  day,  for  value  re- 
ceived, I  promise  to  pay  to  Yon  Yonson  or  order,  at  American  National 
Bank,  the  sum  of  Two  Thousand  Dollars,  with  interest  at  the  rate  of 
Nine  (9)  per  cent  per  annum  from  date  until  paid,  interest  payable  quar- 
terly from  date.  Should  the  interest  not  be  paid  quarterly  from  date,  then 
the  whole  sum  of  principal  and  interest  shall  immediately  become  due 
and  payable,  and  interest  shall  be  compounded  each  quarter  from  date 
thereafter  at  the  same  rate,  principal  and  interest  payable  in  gold  coin 
of  the  United  States.  This  note  is  payable  in  installments  of  $50.00  each, 
payable  upon  the  tenth  day  of  each  calendar  month  subsequent  to  the 
date  hereof,  and  default  in  the  payment  of  any  installment  when  due  shall 
cause  the  whole  note,  principal  and  interest,  to  become  immediately  due 
and  payable. 

OLE  OLESON. 

FORM  NO  38— AFFIDAVIT  TO  PERSONAL  PROPERTY  MORT- 
GAGE. 

STATE  OF 

COUNTY  OF 


the  Mortgagor. .  in  the  foregoing  Mortgage,  named,  and 

the  Mortgagee. . . 

in  said  Mortgage  named,  each  being  duly  sworn,  each  for  himself,  doth 
depose  and  say:  that  the  aforesaid  Mortgage  is  made  in  good  faith  and 
without  any  design  to  hinder,  delay,  or  defraud  any  creditor  or  creditors. 


Subscribed  and  sworn  to  before  me,  this   day  of. 

189. . .,  at  the County  of 


96  HOW    TO    BUY    AND    SELL 

CHAPTER  VII. 

TRANSFER  OF   TITLE   IN    ESCROW.        TAXES    AND    INSURANCE. 

Escrow  Defined — Risks  Attending  Transfers  in  the  Ordinary  Private  Way  — 
Abstract  Denned — What  it  Consists  of — The  Work  of  the  Searcher  of  Title — Limited 
and  Unlimited  Certificates  of  Title  Defined — Policy  of  Title  Insurance — Closing 
Transfers  of  Title  in  Escrow  by  Title  Companies  Fully  Described — Liability  of  Title 
Company  or  Abstracter — Making  Escrows  with  Banks — Insurance,  and  Policy  of 
Insurance,  Defined — Policy  Must  Be  Transferred  Contemporaneously  with  Transfer 
of  Title — Taxes  Defined — How  Same  are  Collected — Penalties  for  Making  Evasive 
Returns — Application  to  Board  of  Equalization  by  Aggrieved  Taxpayer — When  and  in 
What  Amounts  Taxes  are  Payable — Delinquencies. 

Sec.  109.  An  Escrow,  in  respect  to  a  conveyance,  is  an 
obligatory  writing,  delivered  by  the  grantor  or  person  making 
the  conveyance,  to  a  third  person,  to  be  held  by  the  latter  until 
the  performance  of  a  specified  condition  by  the  grantee  or  per- 
son in  whose  favor  the  conveyance  is  made,  and  upon  the  per- 
formance of  the  condition  or  happening  of  a  certain  contin- 
gency, the  conveyance  takes  effect.  The  person  to  whom  the 
conveyance  is  delivered  is  called  the  depositary  or  escrowee. 

Sec.  no.  The  purpose  of  this  chapter  is  to  explain  the 
handling  of  real  estate  transactions  in  escrow  as  practiced  in 
large  cities  by  title  companies.  The  parties  to  a  real  estate 
transaction,  instead  of  closing  up  the  deal  in  the  office  of  a  real 
estate  broker  or  an  attorney  who  may  be  connected  with  the 
transfer,  have  recourse  to  the  escrow  department  of  the  title 
company.  There  are  many  opportunities  for  something  to 
occur  to  affect  the  title  from  the  time  the  agreement  of  sale  is 
signed  until  the  certificate  of  title  is  written  to  date  (usually 
requiring  about  ten  days)  and  the  purchase  money  paid  over. 
There  are  fourteen  places  where  transactions  affecting  the 
title  to  real  estate  are  proceeding  during  each  working  day  in 
the  public  offices  of  the  City  and  of  the  County  of  Los  Angeles, 
and  the  same  is  true  in  varying  degrees  in  the  public  offices 
of  other  cities  and  counties  throughout  the  country.  Judg- 
ments and  decrees  are  docketed  by  the  courts;  deeds,  mort- 
gages and  leases  are  recorded ;  State  and  County,  and  City 
taxes  are  levied  or  paid ;  liens  for  street  assessments  and  of 
mechanics  and  others  are  placed  on  record ;  and  these  may 
change  or  divest  the  title  on  the  faith  of  which  the  parties  are 
dealing.  Land  is  subject  to  the  lien  of  taxes,  judgments  and 
other  like  charges  more  readily  than  any  other  form  of  prop- 


REAL  ESTATE  AT  A  PROFIT  97 

erty,  because  its  ownership  is  more  open  and  notorious  and 
can  be  easily  ascertained  from  the  public  records. 

Sec.  in.  The  law  requires  that  every  instrument  affect- 
ing the  title  to  real  estate  shall  be  recorded,  and  when  such  an 
instrument  is  properly  executed  and  recorded,  it  imparts  no- 
tice to  all  persons  of  its  contents;  and  thereafter,  purchasers 
and  incumbrancers  of  the  same  property  are  considered  in  law 
to  have  notice  of  the  interest  which  the  recorded  instrument 
creates.  A  knowledge  of  these  facts  and  a  desire  to  guard 
against  fraud,  induces  all  persons  about  to  make  an  invest- 
ment in  real  estate,  to  insist  upon  having  an  examination  of 
title  made,  and  a  certificate  of  title  issued  by  a  reputable  title 
company  before  the  purchase  is  consummated  and  the  money 
paid  over  to  the  seller.  Out  of  this  demand  has  grown  the 
business  of  title  examination. 

Sec.  112.  In  times  past,  the  searching  of  all  public 
records  was  made  by  abstracters.  This  is  still  the  case  in  the 
smaller  counties.  The  result  of  the  search  takes  the  form  of 
an  Abstract  of  Title.  The  searcher,  in  preparing  this,  begins 
with  the  patent  issued  by  the  United  States  Government,  and 
then,  in  chronological  order,  gives  an  abstract  of  the  contents 
of  every  deed  and  other  instrument  of  record,  and  these  are 
given  so  fully  that  no  reasonable  inquiry  of  an  attorney  or 
other  person  reading  the  Abstract  will  remain  unanswered 
and  yet  so  briefly  as  to  exclude  irrelevant  details.  In  many 
cases,  the  Abstracter  is  obliged  to  commence  with  the  first  in- 
strument of  any  kind  of  record  and  set  forth  all  subsequent 
transfers,  as  a  particular  piece  of  land,  if  unpatented,  may  for 
years  have  been  held  by  claimants  having  conflicting  posses- 
sary  titles.  The  wording  of  every  certificate  of  acknowledg- 
ment is  given,  for  if  any  one  of  these  is  defective,  that  par- 
ticular instrument  would  not  impart  notice  of  its  contents. 
The  Legislature,  from  time  to  time,  makes  changes  in  the  law 
respecting  the  forms  of  acknowledgments,  and  a  certificate  of 
acknowledgment  at  a  particular  date  must  conform  to  the 
law  in  force  at  that  date.  A  map  or  diagram,  giving  an 
outline  of  the  property,  and  its  relation  to  contiguous  proper- 
ties, usually  accompanies  an  Abstract.  These  Abstracts, 
where  they  relate  to  large  tracts  of  land,  held  originally  by  one 


98  HOW    TO    BUY    AND 

person,  and  afterwards  acquired  by  various  small  holders, 
under  divers  colors  of  title,  and  attended  by  much  litigation  as 
to  boundaries,  etc.,  become  very  voluminous  and  of  consider- 
able pecuniary  value,  because  of  the  amount  of  time  and  de- 
gree of  care  required  to  compile  them.  When  completed,  such 
an  Abstract  is  turned  over  to  an  attorney  for  examination,  and 
when  such  examination  is  finished,  the  attorney  issues  his 
written  opinion  thereon,  pointing  out  the  defects,  if  any,  and 
advising  his  client  whether  or  not  he  can  safely  purchase  the 
premises.  It  can  easily  be  imagined  that  such  a  procedure 
must  necessarily  be  slow,  expensive  and  not  entirely  satis- 
factory. 

Sec.  113.  An  examination  of  title  consists  of  a  search  in 
the  various  public  offices  for  the  record  of  deeds,  leases,  mort- 
gages, trust  deeds,  judgments,  taxes,  street  assessments  and 
other  information  affecting  the  property.  Such  examinations 
are  made  by  searchers — men  skilled  in  that  particular  profes- 
sion— who  make  minutes  of  their  examination  as  they  proceed, 
and  these  minutes  are  afterwards  re-examined  by  the  attorneys 
of  the  title  company.  No  certificate  is  issued  until  such  exam- 
ination and  re-examination  has  been  made,  and  every  court 
proceeding,  deed,  mortgage,  release,  etc.,  affecting  the  property 
under  search,  have  been  considered  and  passed  upon.  The 
searchers  and  attorneys  use  specially  prepared  blanks,  and 
these,  taken  together,  constitute  the  office  memoranda  of  the 
title  company.  On  the  basis  of  these  memoranda,  certificates 
of  title  or  policies  of  title  insurance  are  issued. 

Sec.  114.  Certificates  of  title  may  be  limited  or  unlim- 
ited. A  Limited  Certificate  commences  at  a  certain  date,  such 
as  the  record  of  the  decree  in  a  suit  for  partition  or  the  like, 
as  may  be  indicated  by  the  parties  ordering  the  certificate,  and 
embraces  intermediate  time  up  to  the  date  of  the  certificate. 
It  does  not  cover  the  entire  title.  An  Unlimited  Certificate  of 
Title  covers  the  entire  title  from  the  very  first  instrument  of 
record  affecting  the  premises  described  down  to  the  date  of 
the  certificate.  (See  Form  No.  47.)  The  majority  of  transfers 
are  done  on  the  faith  of  the  Unlimited  Certificate  of  Title.  A 
Continuation  Certificate  of  Title  covers  the  time  from  the  date 
of  the  last  certificate  to  the  date  of  the  continuation. 


REAL  ESTATE  AT  A  PROFIT  99 

Sec.  115.  A  Policy  of  Title  Insurance  guarantees  the  pur- 
chaser or  holder  against  loss  or  damage  which  he  may  sustain 
by  reason  of  defects  in  the  title  to  the  land  he  buys,  not  only 
such  as  may  appear  of  record,  but  also  many  not  disclosed 
of  record,  which  the  most  searching  examination  of  the  records 
could  not  discover;  among  these  are  forgeries,  secret  mar- 
riages, insanity,  heirship,  alienage,  etc.  Policies  are  applica- 
ble to  all  the  varying  forms  of  real  estate  transactions.  Ap- 
propriate forms  are  issued  furnishing  indemnity  not  only  to 
owners,  but  to  holders  of  deeds  of  trust  and  mortgages.  (See 
Form  No.  48.)  The  most  important  element  of  a  Policy  is 
that  the  party  insured  is  enabled  to  avoid  expense  in  defend- 
ing the  title,  and  is  secured  against  loss  if  the  title  fails.  At- 
tacks on  titles  are  frequently  made  under  various  specious 
claims.  If  the  attack  proves  successful,  the  loss  is  increased 
by  the  amount  of  the  expense  of  the  suit,  but  even  if  the  at- 
tack be  warded  off,  the  cost  of  defense  may,  and  often  does, 
entail  serious  inconvenience  and  sometimes  embarrassment. 
If  the  title  is  insured,  all  such  trouble  and  expense  can  be 
avoided,  as  the  Title  Company  always  stands  ready  to  defend. 
Liability  under  the  policy  matures  when  a  defect,  liable  to 
cause  loss,  is  discovered  and  properly  made  known  to  the 
Company. 

^Sec.  116.  Closing  real  estate  transactions  in  escrow  by 
title  companies  is  of  especial  value  to  the  public,  as  it  relieves 
both  the  seller,  who  is  parting  with  his  property,  the  buyer, 
who  is  parting  with  his  money,  and  also  the  real  estate  broker, 
if  he  be  concerned,  of  all  responsibility,  and  places  the  entire 
matter  in  the  hands  of  specialists,  who  will  consummate  the 
deal  in  accordance  with  the  written  instructions  of  the  par- 
ties, safeguarding  every  step.  By  making  transfers  in  escrow, 
the  risks  before  pointed  out  attending  such  transfers,  are  en- 
tirely avoided.  The  purchaser  deposits  his  money  with  the 
company,  and  in  connection  therewith  gives  his  instructions, 
as  in  Form  No.  40,  and  signs  same.  These  instructions  will 
vary  according  to  circumstances,  but  in  general  will  direct 
the  title  company  to  obtain  from  the  seller: 

(i.)  A  deed  to  the  premises,  in  favor  of  the  purchaser, 
or  of  some  person  or  corporation  designated  by  him. 


100  HOW    TO   BUY    AND    SBU, 

(2.)  If  there  be  a  mortgage  on  the  premises,  either  (a) 
the  payment  of  same,  in  which  case  a  release  is  to  be  obtained 
and  recorded;  or  (b)  the  assuming  of  the  mortgage  by  the 
purchaser,  in  which  case  the  deed  is  to  be  made  subject  to  the 
mortgage  (See  Form  No.  13  for  the  correct  wording  of  this) 
and  the  purchase  price  will  be  composed  of  the  amount  of  the 
mortgage  and  a  balance  to  be  paid  in  cash,  the  seller  paying 
the  interest  to  the  date  of  the  transfer. 

(3.)  If  a  new  mortgage  is  to  be  given,  it  will  be  given 
either  (a)  to  the  seller,  and  be  evidenced  by  a  promissory  note 
secured  by  mortgage  on  the  premises  sold,  or  (b)  be  given  to 
a  third  party  and  be  evidenced  by  a  promissory  note  and  mort- 
gage, and  the  money  so  borrowed  will  come  in  the  shape  of 
a  check  or  draft  from  such  third  party. 

(4.)  If  the  premises  are  held  by  a  lessee,  under  a  writ- 
ten lease,  a  written  assignment  from  the  seller  to  the  buyer  is 
to  be  obtained  and  recorded,  provided  the  original  lease  is  of 
record. 

(5.)  If  there  be  insurance  on  the  premises,  a  transfer  of 
the  policy  of  insurance,  together  with  the  assent  to  such  trans- 
fer by  the  insurance  agents,  such  transfer  of  insurance  to  take 
effect  practically  simultaneous  with  the  transfer  of  the  prop- 
erty. 

(6.)     A  rebate  agreement,  as  per  Form  No.  42. 

(7.)  A  stipulation  as  to  who  shall  pay  or  assume  the  un- 
paid taxes,  if  any. 

The  seller  also  gives  "his  instructions  as  per  Form  No.  39 
and  ratifies  the  purchaser's  instructions,  by  signing  at  the  bot- 
tom of  Form  No.  40.  These  forms  are  filled  out  by  the  clerks 
in  the  escrow  department  in  accordance  with  the  verbal  in- 
structions of  the  parties,  and  each  party  is  given  a  card  having 
on  it  the  name  of  the  clerk  and  the  number  of  the  escrow,  and 
all  inquiries  concerning  the  escrow  are  to  be  made  by  number. 
The  purchaser  also  receives  a  receipt  for  any  money  paid  in 
by  him  in  connection  with  the  escrow. 

Sec.  117.  Attached  to  certificates  and  title  policies  are 
plats  of  the  premises,  giving  dimensions,  and  showing  width 
of  streets  and  alleys. 

Sec.  118.     As  suggested  in  Section  68,  it  is  advisable  be- 


REAL  ESTATE  AT  -  A  PRfctflT          ', , ;  \  \  i  101 

fore  the  escrow  instructions  are  given,  to  have  a  written  agree- 
ment, covering  every  phase  of  the  transaction,  and  providing 
in  particular  that  the  deposit  and  part  payment  shall  be  for- 
feited to  the  seller  in  case  the  buyer  shall  fail  to  carry  out  his 
part  of  the  agreement  within  the  time  limited,  and  for  the  sel- 
ler to  receive  into  his  possession  such  deposit,  and,  if  in  the 
shape  of  a  check,  to  have  same  converted  into  cash  immedi- 
ately. The  escrow  instructions,  in  such  case,  will  take  into 
account,  only  the  remainder  of  the  money.  Instances  have  oc- 
curred where  purchasers,  after  placing  a  deposit  evidenced 
by  a  check  in  escrow  and  giving  escrow  instructions,  have 
been  afflicted  with  chilled  extremities  and  either  stopped  pay- 
ment on  the  check  or  withdrew  their  accounts  at  the  banks, 
thus  defeating  the  sale.  The  escrow  instructions  do  not  pro- 
vide for  this  contingency. 

Sec.  119.  The  liability  of  a  title  company  or  of  an  ab- 
stracter  of  records  is  to  the  party  employing  it  or  him  and  not 
to  any  one  else.  The  person  named  in  the  certificate,  or  ab- 
stract, as  he  at  whose  request  it  is  made,  is  the  person  in  whose 
favor  the  liability  exists.  If  a  certificate  of  title  or  an  abstract 
is  ordered  by  the  owner  of  land  for  the  purpose  of  making  a 
sale  to  a  purchaser,  and  a  sale  is  effected,  and  the  purchaser  is 
injured  by  reason  of  errors  and  omissions  in  the  certificate  of 
title  or  abstract,  the  purchaser  cannot  recover  damages  there- 
for from  the  title  company  or  abstracter;  he  must  look  to  the 
seller  for  such  damages  and  the  seller  must  look  to  the  maker 
of  the  certificate  or  abstract.  The  measure  of  such  damages  is 
the  actual  loss  to  the  party  injured. 

Sec.  120.  Conveyances  and  other  papers  are  also  often- 
times placed  in  escrow  with  banks.  (See  Form  No.  44.)  The 
bank  makes  an  envelope  for  the  escrow  as  per  Form  No.  46. 

Sec.  121.  Real  estate  dealers  and  others  will  find  Form 
No.  45  very  convenient  for  caring  for  escrows.  This  is  an 
envelope,  in  which  all  papers  relating  to  the  escrow  can  be 
kept  and  entries  made  on  the  outside  for  reference  or  for  the 
book-keeper. 

Sec.  122.     Insurance. 

(i.)  Insurance  is  a  contract  whereby  one,  called  the  in- 
surer, undertakes  to  indemnify  another,  called  the  insured, 


102  HOW    TO,  BUY    AND 

against  loss,  damage  or  liability  arising  from  an  unknown  or 
contingent  event.  The  sole  object  of  insurance  is  to  indemnify 
the  insured  and  the  latter  must  have  an  insurable  interest  in 
the  thing  insured. 

(2.)  A  policy  of  fire  insurance  is  a  written  instrument 
whereby  insurance  is  effected,  and  which  sets  forth  the  name 
of  the  insured,  a  description  of  the  property,  the  rate  of  prem- 
ium, the  time  during  which  the  insurance  is  to  continue  and 
the  interest  of  the  insured  in  the  property,  if  he  is  not  the  ab- 
solute owner  thereof. 

(3.)  A  change  of  interest  in  the  thing  insured,  unaccom- 
panied by  a  corresponding  change  of  interest  in  the  insurance, 
suspends  fire  insurance  to  an  equivalent  extent  until  the  inter- 
est in  the  thing  and  the  interest  in  the  insurance  is  vested  in 
the  same  person.  A  transfer  of  the  thing  insured  does  not 
transfer  the  policy  until  the  same  person  becomes  the  owner  of 
both  the  policy  and  the  thing  insured. 

(4.)  When  real  estate,  which  is  insured,  is  transferred, 
it  is  necessary  that  the  policy  be  transferred  by  a  written  as- 
signment contemporaneously  with  the  transfer  of  the  title, 
and  such  assignment  of  the  insurance  must  be  assented  to  in 
writing  by  the  agents  of  the  insurance  company. 

(5.)  Where  the  seller  disposes  of  property  which  is  in- 
sured and  takes  back  a  mortgage  as  part  of  the  purchase  price, 
and  also  where  a  mortgage  is  given  for  money  borrowed,  a 
"mortgage  clause"  is  attached,  providing  that  the  insurance 
shall  'be  payable  to  the  mortgagee  as  his  interest  may  appear. 

Sec.  123.     Taxes. 

(i.)  Taxes  are  revenues  collected  for  the  purpose  of  ad- 
ministering the  government.  The  design  of  the  law  is  that  all 
property,  not  exempt,  shall  be  taxed  in  proportion  to  its  value. 
Taxes  are  assessed  by  officers  appointed  for  that  purpose, 
called  assessors.  The  County  Assessor  makes  his  assessment 
between  the  first  Mondays  of  March  and  July  of  each  year, 
and  he  must  ascertain  the  names  of  all  taxable  inhabitants  and 
a  list  of  all  property  in  his  county  subject  to  taxation,  and 
must  assess  such  property  to  the  person  by  whom  it  was 
owned  or  claimed  at  12  o'clock  noon,  the  first  Monday  of 
March.  Land,  in  parcels  not  exceeding  640  acres,  and  the  im- 


REAL  ESTATE  AT  A  PROFIT  103 

provements  thereon,  are  assessed  separately;  these,  and  also 
all  personal  property,  are  assessed  at  their  full  cash  value, 
namely,  the  amount  at  which  the  property  would  be  taken  in 
payment  of  a  just  debt  from  a  solvent  debtor.  The  assessment 
is  made  on  blanks  furnished  by  the  assessor,  and  such  blanks, 
when  filled  up,  must  be  sworn  to,  if  required.  Every  person 
refusing  to  make  a  statement  or  subscribe  an  affidavit  is  liable 
to  a  fine  of  $100.00.  Any  property  wilfully  concealed,  trans- 
ferred, or  misrepresented  to  evade  taxation  must,  upon  dis- 
covery, be  assessed  at  not  exceeding  ten  times  its  value.  Any 
property  discovered  by  the  assessor  to  have  escaped  taxation 
in  the  last  preceding  year,  if  such  property  remains  under  the 
control  of  the  party  who  then  owned  it,  must  'be  assessed  at 
double  its  value.  Taxes  are  a  judgment  lien  and  have  the  ef- 
fect of  an  execution  and  the  lien  attaches  on  the  first  Monday 
of  March. 

(2.)  The  assessor  must  collect  taxes  on  all  personal  prop- 
erty unsecured  by  real  estate  at  the  time  of  making  his  assess- 
ment, and  such  taxes  are  computed  on  the  basis  of  the  rate  for 
the  preceding  year.  If  the  taxpayer  thinks  the  assessor  in 
error,  he  should  pay  the  taxes  and  bring  the  matter  before  the 
Board  of  Equalization,  as  that  is  his  only  legal  remedy.  On 
the  first  Monday  of  July,  the  assessor  turns  over  the  assess- 
ment rolls  of  both  real  and  personal  property  to  the  clerk  of 
the  Board  of  Supervisors.  After  turning  over  his  books,  the 
assessor  cannot  collect  personal  taxes. 

(3.)  The  Board  of  Supervisors  in  each  county,  convenes 
as  a  County  Board  of  Equalization  on  the  first  Monday  of  July 
and  remains  in  session  until  the  third  Monday  in  July,  and 
during  such  time,  the  assessment  rolls  are  open  for  the  in- 
spection of  taxpayers.  The  taxpayer  should  then  examine  the 
rolls  to  ascertain  the  valuation  which  has  been  placed  upon  his 
property  by  the  assessor,  and  at  that  time  complaints  can  be 
made  to  correct  such  valuations.  Such  complaints  are  made  as 
per  Form  No.  43,  which  must  be  verified  upon  oath,  and  no 
reduction  will  be  made  unless  such  application  is  filed.  The 
person  making  the  application  must  attend  and  answer  under 
oath  any  inquiries  pertinent  to  the  application. 

(4.)  The  Board  of  Supervisors  on  the  third  Monday  in 
September  must  fix  the  rate  of  taxes  and  levy  state  and  county 


104  HOW    TO    BUY    AND    SELL 

taxes.  The  taxes  upon  all  personal  property  secured  by  real 
property,  and  one-half  of  the  taxes  on  real  property,  are  due 
and  payable  on  the  second  Monday  of  October,  and  are  de- 
linquent on  the  last  Monday  in  November  next  thereafter  at 
six  P.  M. ;  unless  paid  prior  thereto,  fifteen  per  cent  will  be 
added  to  the  amount  thereof,  and  if  the  said  first  one-half  is 
not  paid  before  the  last  Monday  in  April,  an  additional  five 
per  cent  is  added  thereto ;  the  remaining  one-half  of  the  taxes 
on  real  property  are  payable  on  January  first  next  thereafter, 
and  are  delinquent  on  the  last  Monday  in  April  next  there- 
after, and  unless  paid  prior  thereto,  five  per  cent  is  added.  All 
taxes  may  be  paid  at  the  time  the  first  installment  is  payable. 
All  such  taxes  must  be  paid  at  the  office  of  the  tax  collector. 
City  taxes  are  levied  and  collected  in  practically  the  same  man- 
ner. 

(5.)  After  each  delinquent  date,  .a  list  of  delinquent  taxes 
is  published  in  a  newspaper,  and  if  not  paid,  the  property  will 
be  sold  to  the  State.  The  property  so  sold  may  be  redeemed 
by  the  owner  or  any  party  in  interest  within  five  years  from 
the  date  of  the  sale.  Application  to  redeem  is  made  to  the 
County  Auditor  and  the  redemption  money  is  paid  to  the 
County  Treasurer.  If  not  redeemed  within  the  time  limited, 
the  tax  collector  must  make  a  deed  to  the  State. 

(6.)  Property  incumbered  by  mortgage  or  deed  of  trust, 
and  situate  in  California,  has,  for  the  purposes  of  taxation,  two 
separate  and  distinct  taxable  interests.  The  taxable  interest 
of  the  owner  of  the  fee  is  the  difference  between  the  value 
of  the  land,  if  unincumbered,  and  the  value  of  the  mortgage ; 
the  taxable  interest  of  the  mortgagee  is  the  value  of  the  mort- 
gage security.  The  holder  of  the  mortgage  at  the  time  of  the 
assessment,  must  pay  the  taxes  on  the  mortgage  interest ;  and 
the  owner  of  the  fee,  in  making  out  his  assessment  list,  should 
show  the  value  of  the  land,  less  a  deduction  for  the  value  of  the 
mortgage,  the  remainder  being  the  amount  on  which  he  is  to 
pay  taxes.  Either  party  may  pay  the  taxes  on  both  interests. 
The  State  constitution  provides  that  every  contract  whereby 
a  debtor  is  obligated  to  pay  any  tax  or  assessment  on  money 
loaned,  or  on  any  mortgage,  deed  or  trust  or  other  lien,  is  void, 
and  that  the  agreement  to  pay  interest  is  invalidated.  Because 
of  this  law,  it  is  customary  to  make  the  rate  of  interest  in  the 


REAL  ESTATE  AT  A  PROFIT  105 

mortgage  note  "higher  than  the  rate  actually  to  be  paid,  and  to 
enter  into  a  collateral  agreement,  allowing  the  mortgagor  a 
certain  percentage  of  rebate  in  interest,  provided  he  pays  the 
taxes  on  the  mortgage.  The  agreement  is  so  worded  as  not 
to  obligate  the  mortgagor  to  pay  the  taxes  on  the  mortgage, 
and  to  offer  him  an  option  which  he  may  exercise  to  his  ad- 
vantage. (See  Form  No.  42.) 

(7.)  The  Fiscal  Year  of  the  United  States,  and  of  the  State 
of  California,  begins  July  ist,  and  ends  June  3Oth  of  the  fol- 
lowing calendar  year.  Property  is  assessed,  therefore,  in  the 
latter  part  of  the  fiscal  year,  to-wit,  between  the  first  Monday 
of  March  and  the  first  Monday  of  July  next  following.  The 
assessment,  so  far  as  it  relates  to  real  property,  means  enter- 
ing a  description  of  it  on  the  tax  list,  together  with  the  name 
of  the  owner,  and  the  valuation.  The  law  requires  the  assess- 
ment of  all  taxable  property  to  be  completed  practically  be- 
fore the  fiscal  year  begins,  and  before  the  rate  of  taxation  is 
determined.  The  Board  of  Supervisors  levies  the  rate  of  tax- 
ation on  the  third  Monday  in  September.  The  taxes  levied  in 
September,  in  the  year  1905,  will  be  referred  to  as  "Taxes  of 
1905-1906,"  and  will  be  payable  in  November,  1905,  and  in 
April,  1906. 

FORM  NO.  39— ESCROW  INSTRUCTIONS  OF  SELLER. 
Order  No.  157,311. 

Los  Angeles,  Cal.,  April  10,  1905. 

Title  Insurance  and  Trust  Company: 

GENTLEMEN  : — I  herewith  hand  you  a  grant,  bargain  and  sale  deed  ex- 
ecuted by  Walter  Scott  to  Jules  Verne,  and  bearing  this  date,  of  Lot  15  in 
Block  D,  of  the  Wolfskill  Tract,  as  per  map  recorded  in  Book  12,  page 
100,  Miscellaneous  Records  of  Los  Angeles  County,  which  you  are  author- 
ized to  deliver  to  Jules  Verne  or  his  representatives  upon  payment  to  you 
within  fifteen  days  from  date  hereof  for  my  account  of  the  sum  of  $5000. 
from  which  you  may  deduct  your  charges  for  your  unlimited  Certificate  of 
Title  or  a  continuation  of  your  Unlimited  Certificate  which  I  will  hand  you 
herewith  and  from  which  you  may  also  pay  all  incumbrances  on  said  prop- 
erty. 

(Signature)  WALTER  SCOTT, 
Address :  927  Burlington  Avenue. 
Home  Phone  22567. 


106  HOW    TO   BUY    AND 

FORM  NO.  40— ESCROW  INSTRUCTIONS  OF  BUYER. 

Escrow  No.  30777. 

Los  Angeles,  Cal.,  April  n,  1905. 
Title  Insurance  and  Trust  Co.: 

Herewith  please  find  check  for  $5000  which  you  are  authorized  to 
use  in  connection  with  your  order  No.  157,311  when  you  can  issue  an  Un- 
limited Certificate  of  Title  in  your  usual  form,  on  Lot  15  in  Block  D, 
of  the  Wolfskill  Tract,  as  per  map  recorded  in  Book  12,  page  100,  of  Mis- 
cellaneous Records  of  Los  Angeles  County,  which  will  show  that  the  title 
to  said  property  is  vested  in  Jules  Verne,  free  from  all  incumbrances,  ex- 
cept taxes  of  the  fiscal  year and  a  mortgage,  executed  by 

in   favor   of for  $ .due years 

after with    interest    at %    per payable 

at 

I  understand  that  the  certificate  which  will  be  issued  will  except  in- 
struments, trusts,  defects,  liens,  easements  and  incumbrances  and  the 
rights  or  claims  of  parties  in  possession  of  the  property  not  shown  by  any 
public  record,  and  also,  the  following: 

1.  Mining  claims,  existing  roads,  water  locations  and  reversions  con- 
tained in  United  States  Patents. 

2.  Records  of  Irrigation,  Drainage,  Reclamation,  Levee,  Protection 
and  Sanitary   Districts   if  the  property  described  therein   lies  within  the 
boundaries  of  any  such  districts. 

3.  Municipal  taxes  and  the  assessments  and  the  effect  and  operation 
of  the  municipal  laws,  ordinances  and  regulations,  proceedings  for  street, 
sewer,  shade  tree  and  sidewalk  improvements,  and  for  opening,  widening 
and  other  changes  in  streets  or  alleys,  if  the  property  described  therein  lies 
within  the  boundaries  of  any  incorporated  City  except  the  City  of  Los 
Angeles. 

4.  Proceedings  for  street,  sewer,  shade  tree,  and  sidewalk  improve- 
ment, and  for  the  opening,  widening  and  other  changes  in  streets  or  alleys 
in  the  City  of  Los  Angeles,  unless  the  amount  of  the  assessment  therefor 
has  become  fixed  and  shown  as  a  lien  by  the  recording  of  the  warrant  at  the 
date  thereof  in  the  public  office  designated  by  law. 

5.  The  validity  or  legality  of  tax  sales,  street  assessments,  leases, 
easements,  declarations  of  homesteads  and  money  judgments. 

I  also  understand  that  you  will  file  necessary  deeds  and  mortgages, 
then  pay  off  such  incumbrances  as  may  exist  at  the  time  of  filing  such  in- 
struments, to  vest  the  title  as  above  and  shall  not  be  held  responsible  for 
any  liens  which  may  attach  after  such  filing. 

Obtain  the  note  secured  by  said  mortgage. 

Before  completing  the  transaction,  have  transferred  to  me  $ , 

fire  insurance  which  will  expire 

If  you  are  unable  to  comply  with  these  instructions  within  fifteen 
days  from  this  date,  said  amount  to  be  returned  to  me  on  demand. 

Instruct  the  Recorder  to  mail  the  Instruments  connected  with  the 
transactions,  as  follows:  to  grantee,  314  Byrne  Building,  and  when  the 


REAL  ESTATE  AT  A  PROFIT  107 

transaction  is  completed  you  may  send  all  documents  connected  therewith 
to  grantee  at  above  address. 

ADDITIONAL  INSTRUCTIONS  :  I  agree  to  pay  following  charges :  For  re- 
cording deed  to  me  $1.20;  for  certificate  vesting  title  in  me  $5.00 

(Signature)     JULES  VERNE, 

Address  :  314  Byrne  Building. 
Phono  Main  233. 

Approved.  Use  the  money  and  record  instruments  to  place  the  title 
in  the  condition  required  by  the  foregoing  instructions. 

I  agree  to  pay  following  charges :  For  continuation  of  certificate,  $7.50. 

WALTER  SCOTT» 
927  Burlington  Avenue. 

FORM  NO.  41— TAX  RELEASE  OF  MORTGAGOR. 

Los  Angeles,  August  n,  1905. 

In  consideration  of  the  release  of  the  mortgage  recorded  in  Book  1470, 
page  233  of  Mortgages,  Los  Angeles  County  Records,  I  hereby  agree  to 
release  and  save  harmless  Jules  Verne,  the  said  mortgagee,  by  reason  of 
any  taxes  which  may  be  levied  against  him  upon  said  mortgage  or  the  in- 
terest created  thereby  for  the  fiscal  year  1905-1906. 

WALTER  SCOTT. 

FORM  NO.  42— INTEREST  REBATE  AGREEMENT. 

Los  Angeles,  California,  April  10,  1905. 

FOR  A  VALUABLE  CONSIDERATION,  I  hereby  agree  to  deduct  three  per 
cent  per  annum  from  the  interest  on  the  mortgage  note  for  the  principal 
sum  of  $3000  in  my  favor,  signed  by  Jules  Verne,  dated  April  loth,  1905, 
Provided  said  debtor  pays  annually  all  taxes  and  assessments  levied  against 
the  property  covered  by  the  mortgage  securing  said  note  and  upon  said 
mortgage  and  the  debt  secured  thereby,  during  the  continuance  of  said 
note  unpaid,  r-.nd  presents  to  the  undersigned,  proper  official  receipts  show- 
ing such  payment;  said  payment  to  be  made  before  any  such  taxes  or  as- 
sessments respectively  become  delinquent. 

This  is  in  no  wise  to  be  considered  as  an  agreement  binding  said 
debtor  to  pay  said  taxes  or  assessments,  but  is  only  a  right  or  privilege 
which  said  debtor  can  exercise  or  not  at  his  option. 

WALTER  SCOTT. 

FORM  NO.  43— APPLICATION  TO  COUNTY  BOARD  OF 
EQUALIZATION. 

To  THE  HONORABLE  BOARD  OF  EQUALIZATION  IN  AND    FOR    Los    ANGELES 
COUNTY,  CALIFORNIA,  FOR  THE  YEAR  1904. 

The  application  of  respectfully  represents  that  he 

is  the  owner  and  party  affected  by  the  excessive  assessed  valuation  of  the 
following  described  property  in  the  County  of  Los  Angeles,  which  said 
property  is  assessed  on  the  assessment  roll  of  said  County  for  the  year 

1904,  in  Vol ,  at  page of  the  Assessment  Roll,  as  follows, 

to-wit ; 


108  HOW   TO    BUY    AND 

And  your  applicant  asks  that  the  said  assessment  thereof  be  reduced 
to  $ 

That  the  grounds  upon  which  such  reduction  is  asked  and  should  be 
made  are  as  follows,  to-wit : 

That  the  actual  cash  value  of  said  property  so  assessed  as  aforesaid 
does  not  exceed  $ 

Wherefore,  your  petitioner  prays  that  reasonable  notice  of  the  hear- 
ing of  this  application  be  given,  and  that  the  reduction  above  asked  for  be 
made. 


Address  of  Petitioner 

State  of  California,  County  of  Los  Angeles,  ss. 

being  duly  sworn,  says :  That  he  is  the  ap- 
plicant in  the  foregoing  application,  that  he  has  read  the  same  and  knows 
the  contents  thereof,  and  that  the  same  is  true  of  his  own  knowledge,  except 
as  to  the  matters  therein  stated  on  information  and  belief,  and  as  to  those 
matters  he  believes  it  to  be  true. 

Subscribed  and  sworn  to  before  me, this 

day  of  July,  1904. 

C.  G.  KEYES,  County  Clerk. 

By Deputy    County   Clerk. 

FORM  NO  44-ESCROW  AGREEMENT  AND  INSTRUCTIONS  TO 

BANK. 

KNOW  ALL  MEN  BY  THESE  PRESENTS,  that  Hiram  White,  of  the 
County  of  Ventura,  State  of  California,  the  party  of  the  first  part,  here- 
inafter designated  as  the  vendor,  and  William  Willard,  of  the  County  and 
State  aforesaid,  the  party  of  the  second  part,  hereinafter  designated  as 
the  vendee,  have  entered  into  the  following  agreement,  that  is  to  say:  the 
said  vendor  has  sold,  and  the  said  vendee  has  purchased,  the  following 
described  land,  situate  in  the  County  of  Ventura,  State  of  California, 
to-wit:  the  Southwest  Quarter  (S.  W.  54)  of  Section  Twelve  (12),  in 
Township  Seven  (7)  North,  Range  Thirty-three  (33)  West  of  S.  B  M., 
containing  one  hundred  and  sixty  (160)  acres,  more  or  less,  on  the  fol- 
lowing terms  and  conditions,  viz: 

The  purchase  price  is  Seven  Thousand  Dollars  ($7000),  to  be  paid 
in  United  States  Gold  Coin,  of  which  the  sum  of  Two  Thousand  Dollars 
($2000)  is  paid  this  date  by  the  vendee  to  the  vendor,  the  receipt  whereof 
is  hereby  acknowledged. 

A  deed  executed  by  the  vendor  conveying  said  land  to  the  vendee, 
as  aforesaid,  is  to  be  executed  and  placed  in  escrow  with  the  Bank  of! 
Ventura,  in  the  town  of  Ventura,  to  be  held  by  said  Bank  according  to 
the  terms  of  this  agreement. 

If  the  payment  of  the  remainder,  to-wit :  the  sum  of  Five  Thousand 
Dollars  ($5000),  together  with  interest  thereon  from  this  date  until  paid, 
is  made  on  or  before  November  i,  1905,  then  said  Bank  is  authorized  and 
instructed  to  deliver  said  deed  to  the  vendee  and  said  sale  shall  be  con- 
summated. If  said  payment  is  not  made  within  the  time  limited,  as 


REAL  ESTATE  AT  A  PROFIT  109 

aforesaid,  then  said  deed  shall  be  returned  to  said  vendor  and  all  pay- 
ments theretofore  made  shall  be  forfeited  to  the  vendor  as  liquidated 
damages,  and  the  vendee  shall  acquire  no  rights  to  said  land  by  reason 
of  such  payments. 

The  vendor  shall  be  permitted  to  retain  possession  of  said  land  and 
to  cultivate  and  graze  the  same  until  November  i,  1905,  and  to  receive 
and  retain  the  benefits  thereof. 

This  agreement  is  made  in  triplicate,  one  copy  to  be  kept  by  the 
vendor,  one  copy  by  the  vendee,  and  one  copy  to  be  delivered  to  and 
retained  by  the  said  Bank  of  Ventura  as  its  authority  and  instructions 
in  the  premises. 

Time  is  of  the  essence  of  this  agreement  and  a  non-compliance  with 
the  terms  hereof  will  work  a  forfeiture. 

IN  WITNESS  WHEREOF,  the  parties  hereto  have  hereunto  set  their 
hands  and  seals  this  29th  day  of  July,  1905. 

HIRAM  WHITE.         (Seal.) 
WILLIAM  WILLARD.  (Seal.) 

FORM  NO.  46— BANK  ESCROW  ENVELOPE. 
ESCROW. 

VENTURA,  CALV  July  29,  1905. 
HIRAM  WHITE 

and 

WILLIAM  WILLARD. 

Deliver  the  enclosures  on  payment  of  $5000  if  paid  by  or  before 
November  I,  1905.  Should  parties  fail  to  pay  as  agreed,  return  all  papers  to 
Hiram  White. 

See  instructions  within. 


110 


HOW    TO   BUY    AND 


FORM    NO.   45— ENVELOPE   FOR   KEEPING   ESCROW    PAPERS 
AND  ACCOUNT. 


Sale  No, 
Owner, 


Purchaser, 


Escrow  No. . . . 
Telephone 


Lot 

Price 

Salesman, 


Telephone, 
Block.. 


ACCOUNT". 


c 

R 

C 

=1. 

Deposit.     







Balance.    

..,, 

...... 







CHARGES 



..... 



Commission.  4 







..... 

•-••• 

Notary      ..... 



Racortiog        .... 





...... 









City  Taxes       .... 
County  Taxes  .... 



... 





..... 





Certificate  of  Title  • 

Ordered.  No  • 

Balance  by       •        ~       •        • 

•-•• 









„... 







Date.. 


REAL  ESTATE  AT  A  PROFIT  111 

FORM  NO.  47— UNLIMITED  CERTIFICATE  OF  TITLE. 

Incorporated  December  20th,  1893.  Cable  Address,  "Title  Trust." 

TITLE  INSURANCE  AND  TRUST  COMPANY 

Capital  Stock  (Paid  Up)  $500,000. 
Corner  Franklin  and  New  High  Streets. 

Los  ANGELES,  CAL 

UNLIMITED  CERTIFICATE, 

Made  at  the  request  of 

After  a  careful  examination  of  the  Official  Records  of  the 

County  of  Los  Angeles,  State  of  California, 

except  those  hereinafter  mentioned,  and  of  the  Records  of  the  Federal 
Offices  located  at  Los  Angeles,  in  relation  to  the  title  to  that  certain  tract 
of  land  hereinafter  described,  the 

TITLE  INSURANCE  AND  TRUST  COMPANY, 

a  Corporation,   organized   and  existing   under  the  laws   of  the   State  of 

California,  and  having  its  principal  place  of  business  at  the  City 

of    Los    Angeles,    in    the    County    of    Los    Angeles, 

State  of  California,  I 

hereby  certifies  that  said  title,  as  appears  from  said  records,  is  vested  in 

(Here  follows  official  description  of  premises,  with  statement  as  to 
liens,  incumbrances,  taxes  and  restrictions.) 

This  Certificate  does  not  include  an  examination  of,  or  a  report  on : 

1.  Rights  reserved  in  United   States   Patents,  or  in  the  Certificate 
of    Indemnity    Land   selections,    existing    roads,    water    locations,    mining 
claims,  or  matters  relating  thereto. 

2.  Records  of  or  relating  to  Irrigation,  Drainage,  Reclamation,  Levee, 
Protection   and   Sanitary   Districts   if  the   property   described   herein   lies 
within  the  boundaries  of  any  such  districts. 

3.  Municipal  taxes   and  assessments  and  the  effect  and  operations 
of  the  municipal  laws,  ordinances  and  regulations,  proceedings  for  street, 
sewer,  shade  tree  and  sidewalk  improvements,  and  for  opening,  widening, 
and  other  changes  in  streets  or  alleys,  if  the  property  described  herein 
lies  within  the  boundaries  of  any  incorporated  city  except  the  City  of  Los 
Angeles. 

4.  Proceedings  for  street,  sewer,  shade  tree  and  sidewalk  improve- 
ments, and  for  opening,  widening  and  other  changes  in  streets  or  alleys 
in  the  City  of  Los  Angeles,  unless  the  amount  of  assessment  therefor  has 
become  fixed  and  shown  as  a  lien  by  the  recording  of  the  warrant  at  the 
date  hereof  in  the  public  office  designated  by  law. 

5.  Instruments,   trusts,   defects,   liens,    easements   and   incumbrances 
;not  shown  by  any  public  record  of  the  City  of  Los  Angeles,  or  of  the 
County  of  Los  Angeles,   State  of  California,  or  by  the   records   of  the 
Federal  Offices  located  at  Los  Angeles. 

6.  The  validity  or  legality  of  tax  sales,  street  assessments,  attach- 
ments, leases,  easements,  declarations  of  homestead  and  money  judgments 
if  any  are  mentioned  as  incumbrances  in  tais  certificate. 


112  HOW   TO   BUY   AND 

IN  TESTIMONY  WHEREOF,  the  Title  Insurance  and  Trust  Company 
has  caused  these  presents  to  be  duly  signed  by  its  President,  attested  by 
its  Secretary,  under  its  corporate  seal,  and  counter- 
signed by  its  Manager,  this day  of 190. . .  at M. 

TITLE  INSURANCE  AND  TRUST  COMPANY. 

By President. 

Countersigned Manager. 

Attest Secretary. 

(Here  follows  plat  of  premises.) 

FORM  NO.  4^-OWNER'S  POLICY  OF  TITLE  INSURANCE. 

Los  ANGELES,  CAL 

Amount,  $2000  Policy  No.  3610  Order  No.  120636 

OWNER'S  GUARANTEE  POLICY  OF  TITLE  INSURANCE 
In  consideration  of  the  sum  of  One  Dollar  and  other  valuable  con- 
siderations, paid  for  this  POLICY  OF  INSURANCE,  the  . 

TITLE  INSURANCE  AND  TRUST  COMPANY 

a  Corporation,  organized  and  existing  under  the  laws  of  the   State   of 

California,    and    having    its    principal    place    of    business    at 

the  City  of  Los  Angeles,  in  the  County  of  Los 

Angeles,  State  of  California, 

Does  Hereby  Insure 

John  Brown,  and  his  heirs  or  devisees,  for  the  term  of  thirty-five  years 
from  the  date  hereof,  against  any  loss  or  damage  not  exceeding  in  all  the 
sum  of  Two  Thousand  ($2000)  Dollars,  which  the  said  Insured  shall, 
during  said  term  of  thirty-five  years,  sustain  by  reason  of  any  incorrect 
statement  or  guaranty  in  this  Policy  concerning  the  title  to  the  tract  of 
land  hereinafter  described,  or  by  reason  of  anv  defect  in,  or  lien  or  in- 
cumbrance  on  the  title  of  Insured  to  said  land,  at  the  date  hereof,  except- 
ing only  the  defects,  liens,  incumbrances  and  other  matters  hereinafter 
mentioned  in  the  written  and  printed  exceptions  of  this  Policy ;  and,  as 
a  part  of  this  Policy,  and  subject  to  all  its  terms,  exceptions,  conditions 
and  stipulations,  the  said  Title  Insurance  and  Trust  Company  guarantees 
that  the  title  to  said  land  is  vested  in  the  said  John  Brown. 

(This  Policy  consists  of  3  pages,  which  are  numbered  at  the  end  of 
each  page.) 

DESCRIPTION   OF  THE  TRACT  OF  LAND   COVERED  BY  THIS   POLICY  OF  INSURANCE: 

(Description.) 

EXCEPTIONS. 

This  Company  does  not  insure  against  any  of  the  following : 

1.  Instruments,  Trusts,  Liens,  Easements,  Incumbrances  and  Rights 
or  Claims  of  parties  in  possession  of  all  or  any  portion  of  said  property 
not  shown  by  the  public  records  of  the  City  of  Los  Angeles,  or  of  the 
County  of  Los  Angeles,   State  of   California,   or  by  the   records   of  the 
Federal  Offices  located  at  Los  Angeles. 

2.  Proceedings  for  street,  sewer,  shade  tree  and  sidewalk  improve- 
ments, and  for  opening,  widening  and  other  changes  in  streets  or  alleys 


REAL  ESTATE  AT  A  PROFIT  113 

unless  the  amount  of  the  assessment  therefor  has  become  fixed  and  shown 
as  a  lien  by  the  recording  of  the  Warrant  at  the  date  hereof  in  the  public 
office  designated  by  law. 

This  Policy  is  issued  and  the  liability  of  this  Company  is  based  upon 
the  following  conditions  and  stipulations : 

1.  In  case  any  action  or  proceeding  shall  be  begun  against  the  In- 
sured founded  upon  a  defect,  lien  or  incumbrance  prior  in  date  to  this 
Policy,  and  thereby  insured  against,  the  Insured  shall  at  once  notify  this 
Comoany  thereof  in  writing,  and  shall  secure  to  this  Company  the  right 
to  defend  the  same  so  far  as  necessary  to  protect  the  Insured,  and  the 
Insured  shall  render  all  reasonable  assistance  in  such  defense;  and  this 
Company  will,  at  its  own  cost  and  charge,  defend  the  Insured  in  such 
action  or  proceeding,  reserving,  however,  the  option  of  settling  the  claim, 
or  of  paying  this  Policy  in  full,  or  of  defending  such  action  or  proceed- 
ing; and,  whether  such  defense  by  this  Company  shall  be  successful  or 
unsuccessful,   this   Company  will   pay,   in  addition  to  the   loss,   all  costs 
imposed  on  the   Insured   in   litigation   carried   on  by  this   Company   for 
the  Insured  under  this  Policy;  but  this  Company  will  in  no  case  be  liable 
for  any  costs  or  expenses  incurred  by  the  Insured  in  such  litigation  with- 
out the  consent  of  this  Company.     If  the  notice  above  designated  shall 
not  be  given  to  this  Company  and  the  said  right  to  defend  be  not  secured 
to  this  Company  within  five  days  after  the  service  on  the  Insured  of  the 
summons  or  process  in  such  action  or  proceeding,  then  this  Policy  shall 
be  void  as  to  such  defect,  lien  or  incumbrance. 

2.  The  Insured  shall,  in  writing,  promptly  notify  this  Company  of 
any  defect,  lien  or  incumbrance  prior  in  date  to  this  Policy,  and  thereby  in- 
sured against,  which  shall  come  to  the  knowledge  of  the  Insured,  in  respect 
of  which  loss  or  damage  is  apprehended,  and  shall,  in  writing,  prior  to 
any  payment,   settlement   or  compromise   thereof  by  the   Insured,   invest 
this  Company  with  the  power  and  authority,  at  its  option,  to  pay,  settle 
or  compromise  such  defect,  lien  or  incumbrance  for  or  in  the  name  of  the 
Insured,  or  to  resist  or  remedy  the  same  by  legal  proceedings  for  or  in 
the  name  of  the  Insured,  all  at  its  own  cost  and  charge,  or  to  pay  this 
Policy  in  full.     In  the  event  that  the  Insured  shall  fail  to  comply  with  this 
condition,  then  this  Policv  shall  be  void  as  to  all  loss  or  damage  by  reason 
of  such  defect,  lien  or  incumbrance. 

3.  Whenever  this  Company  shall  have  settled  a  claim  or  loss  under 
this  Policy,  it  shall  be   subrogated  to  and  be  entitled  to  all  the   rights, 
securities  and  remedies  of  the  Insured  for  the  recovery  of  the  same,  in- 
cluding also  all  the  rights,  securities  and  remedies  which  the  Insured  has 
or  would  have  had  against  any  other  person  or  property  in  respect  to  such 
claim  or  loss  had  this  Policy  not  been  made,  and  also  the  right  to  use 
the  name  of  the  Insured  for  the  purpose  of  enforcing  or  collecting  the 
same;  and,  at  the  option  of  this  Company,  the  Insured  shall  transfer  or 
cause  to  be  transferred  to  this  Company  all  such  rights,  including  per- 
mission and  authority  to  use  the  name  of  the  Insured  for  the  recovery 
or  defense  thereof.     If  the  payment  of  the  loss  under  this   Policy  does 


114  HOW    TO   BUY    AND 

not  cover  the  whole  loss  of  the  Insured,  this  Company  shall  be  subro- 
gated  to  such  rights,  securities  and  remedies  in  the  proportion  which  the 
said  payment  of  loss  bears  to  the  amount  of  such  loss  of  the  Insured  not 
covered  by  said  payment,  and  the  Insured  warrants  that  such  rights  of 
subrogation  shall  vest  in  this  Company  unaffected  by  any  right  of  the 
Insured. 

4.  The  liability  of  this  Company  shall  in  no  case  exceed  in  all  the 
actual  loss  of  the  Insured. 

5.  All   payments   made  by   this    Company   under   this    Policy   shall 
reduce  the  amount  of  the  insurance  pro  tanto,  and  payment  or  tender  of 
payment  in  any  case  of  the  full  amount  of  this   Policy  shall  terminate 
all  liability  of  this  Company. 

6.  When  the  liability  of  this  Company  has  been  definitely  fixed  in 
accordance  with  this  Policy,  the  loss  or  damage  shall  be  payable  within 
thirty  days  thereafter. 

7.  It  is  particularly  understood  and  agreed  that  this  Company  is  not, 
and  will  not  be,  liable  under  this  Policy  on  account  of  doubts,  rumors  or 
assertions  of  defects,  liens  or  inctimbrances,  but  only  for  loss  or  damage 
under  actual  defects,  liens  or  incumbrances  insured  by  this  Policy. 

8.  This  Company  does  not  by  this  Policy  insure  anyone  other  than 
the  Insured,  against  any  loss   or   damage,   except  that  this   Policy  may, 
with   the   consent  of  this    Company   endorsed   hereon,   be   assigned   to   a 
mortgagee   of   the    Insured   who   shall   thereafter   be    entitled   to    all    the 
benefits,  rights  and  remedies  of  the  Insured  under  this  Policy,  and  such 
mortgagee  shall  not  be  prejudiced  nor  lose  any  rights  under  this  policy 
by  reason  of  any  act  or  negligence  of  the  Insured,  to  which  act  or  negli- 
gence such  mortgagee  is  not  a  party. 

9.  Whenever   the   Insured  shall   transfer  the  title   to   the  property 
described  in  this  Policy,  it  may  be  surrendered  and  cancelled,  and  a  new 
Policy  may,  if  the  risk  is  accepted,  be  issued  upon  payment  of  the  regular 
rates  for  continuation. 

10.  The  term  "Insured"  wherever  it  is  used  in  this  Policy  includes 
all  described  on  its  first  page  as  those  whom  it  insures,  and  the  term  "this 
Company"  wherever  used  in  this  Policy  means  the  Title  Insurance  and 
Trust  Company. 

11.  Nothing  contained  in  this  Policy  shall  be  construed  as  an  insur- 
ance to  any  one  against  defects,  liens  or  incumbrances  created  subsequent 
to  the  date  hereof,  or  created  or  suffered  by  the  Insured. 

IN  TESTIMONY  WHEREOF,  said  Title  Insurance  and  Trust  Company 
has  caused  these  presents  to  be  duly  signed  by  its  President  and  attested 
by  its  Secretary,  under  its  Corporate  Seal,  this  Twenty-third  day  of  April, 
1905,  at  8  A.  M. 

TITLE  INSURANCE  AND  TRUST  COMPANY. 

By President. 

Countersigned : 

Manager. 

Attest Secretary. 

(Plat  of  Premises.) 


REAL  ESTATE  AT  A  PROFIT  115 

CHAPTER  VIII. 

HOMES  AND  HOMESTEADS. 

What  the  True  Home  Should  Be — Buying  Versus  Building — Selecting  the  Lot — 
Plan  of  the  House — The  Rough  Sketch — Preliminary  Drawing — Estimating  the  Cost — 
Plans  and  Specifications — Obtaining  Bids — Superintending  the  Work — Requirements 
of  the  Law  in  Regard  to  Preparing,  Executing  and  Filing  the  Contract — Filing 
Notice  of  Completion — Liens  of  Mechanics  and  Material  Men — Notice  Where  Owner 
Leases  Land  to  be  Improved — Homestead  Exemptions — How  and  by  Whom  to  be 
Exercised — Conveyance  or  Incumbrance,  and  Abandonment,  of  the  Homestead — 
Homestead  as  Applied  to  Public  Lands. 

Sec.  124.     Building  the  Home. 

(i.)  A  home  should  be  more  than  a  house — more  than  a 
place  in  which  to  eat  and  sleep — far  more !  The  home  should 
be  a  spot  so  cozy  and  attractive  in  its  appointments  and  sur- 
roundings that  the  human  heart  will  cling  to  it  as  to  a  bit  of 
earthly  heaven ;  a  place  the  children  will  learn  to  love  and  to 
which  their  thoughts  will  tenderly  turn  in  after  years ;  a  place 
where  the  husband  and  wife  may  find  daily  inspiration  and 
enjoyment.  Wealth  is  not  essential  to  ideal  home  conditions, 
as  some  of  the  sweetest  homes  on  earth  are  owned  by  people 
of  limited  means. 

(2.)  If  the  amateur  investor  is  undecided  whether  to  ac- 
quire a  home  by  buying  a  house  already  built,  or  to  purchase 
a  lot  and  erect  a  house,  he  should  make  a  comparison,  as  nearly 
as  he  can,  with  a  view  to  arriving  at  a  determination  of  the 
matter.  Should  he  decide  to  build,  the  following  remarks  are 
intended  to  afford  him  some  suggestions  in  regard  thereto. 

(3.)  The  house  will  cost  practically  the  same  wherever 
it  is  located  and  it  will  depreciate  in  value  as  the  years  pass. 
The  lot  will  determine  the  future  value  of  the  premises  as  a 
whole.  The  lot  should  be  selected  in  the  best  surroundings 
consistent  with  the  means  of  the  purchaser.  (Read  also  Sec- 
tions 31  and  47  in  this  connection.)  A  vacant  lot  with  houses 
on  each  side,  is  a  good  one  to  buy,  as  one  knows  then  exactly 
what  the  adjoining  improvements  will  be.  One  can  often  buy 
a  lot  close  to  the  center  of  town  as  cheaply  or  cheaper  than  he 
can  buy  in  a  new  subdivision,  and  have  sewers  and  all  street 
improvements  paid  for,  whereas,  in  the  subdivision  there  will 
be  no  sewer  and  the  odors  from  cesspools  are  eventually  bound 
to  be  offensive.  Close-in  property  will  rent  more  readily  and 
increase  in  value  more  rapidly  than  outside  property.  When 


116  HOW    TO    BUY   AND 

the  prospective  home  builder  has  secured  the  title  in  fee  to  a 
lot,  he  has  a  basis  of  security  on  which  to  borrow  money  from 
a  building  and  loan  association,  bank  or  private  party  to  erect 
a  house. 

(4.)  As  to  the  plan  of  the  house.  Any  building  contrac- 
tor will  be  glad  to  furnish  the  intending  home  builder  with 
blue  prints  of  houses.  From  these,  he  can  select  one  suited  to 
his  taste  and  means.  If  he  wishes  to  work  out  some  ideas  of 
his  own,  he  should  procure  a  large  sheet  of  wrapping  paper,  a 
ruler  divided  into  quarter  inches,  and  draw  to  scale  a  rough 
sketch  of  the  outline  of  the  house,  allowing  one-fourth  of  an 
inch  on  the  paper  for  each  one  foot  of  the  house.  Any  outline 
or  plan  not  drawn  to  scale  is  of  little  value.  If  the  house  is 
to  be  two  stories,  he  should  draw  a  floor  plan  of  each  story. 
The  upper  floor,  of  course,  must  conform  in  outline  to  the 
lower.  The  plumbing  of  the  upper  floor  should  be  directly 
over  that  of  the  lower  floor,  and  all  be  kept  well  to  the  rear  of 
the  house,  to  save  expense.  The  house  should  be  made  two 
full  stories,  as  there  is  much  dissatisfaction,  and  no  particular 
saving  is  made,  in  erecting  a  house  of  one  and  one-half  stories. 
Too  many  rooms  should  not  be  provided  for,  and  the  greatest 
amount  of  study  should  be  expended  in  the  arrangement  of 
the  sitting  room  and  kitchen — the  rooms  that  will  be  occupied 
most  by  the  family. 

(5.)  The  rough  sketch  should  then  be  taken  to  an  archi- 
tect or  building  contractor  and  explained  to  him,  and  he  should 
be  requested  to  prepare  a  preliminary  drawing  from  the  sketch. 
Ordinarily,  no  charge  is  made  for  the  preliminary  drawing, 
but  the  architect  or  contractor  will  expect,  of  course,  to  pre- 
pare the  plans  and  specifications  if  the  owner  decides  to  build. 
In  the  drawing  will  be  incorporated  such  advantageous  sug- 
gestions as  may  be  talked  over  and  decided  upon. 

(6.)  The  architect  or  contractor  can  give  the  owner  an 
estimate  of  the  probable  cost  of  the  house  when  completed, 
but  such  estimate  will  generally  be  under,  rather  than  over,  the 
actual  cost.  The  following  rule  will  enable  the  owner  to 
ascertain  the  cost  for  himself  within  $300  or  $400,  more  or  less, 
viz.:  Multiply  together  the  length,  breadth  and  height,  and 
this  product  by  seven ;  point  off  two  places  and  the  result  will 


REAI,  ESTATE  AT  A  PROFIT  H7 

be  the  cost  in  dollars  and  cents.  Thus,  a  building  28x56,  24 
feet  in  height,  should  cost  approximately  $2634.24.  This  rule 
applies  to  ordinary,  plain  construction  only.  The  estimate  of 
the  height  of  a  house  with  a  shingled  roof  should  extend  to 
only  one-half  the  height  of  such  roof. 

(7.)  There  is  much  variety  in  plans  and  specifications, 
and  for  this  reason  no  model  set  is  given.  What  should  be 
provided  for  will  be  suggested  by  the  following  division  head- 
ings, viz. :  Dimensions,  height,  foundation,  cellar,  chimneys, 
timbers,  carpenter  work,  under-pinning,  bridging,  exterior 
covering,  shingling,  roofing,  ventilators,  mouldings,  porches 
or  verandahs,  scuttles,  sky-lights,  interior  finish,  stairs,  base 
boards,  picture  moulding,  wainscoting,  floors,  closets,  kitchen 
sink,  doors,  screen  doors,  screens,  windows,  glass,  hardware, 
lathing,  plastering,  plumbing,  waste  pipe,  ventilation,  bath  tub, 
water-closets,  wash  basins,  drains,  instantaneous  heater,  slop 
hoppers,  wash  trays,  electric  work,  electric  bells,  electric  lights, 
gas  piping,  painting,  sidewalk  and  fence.  The  electric  and  gas 
fixtures  and  the  shades  are  usually  supplied  by  the  owner  after 
the  house  is  completed. 

(8.)  When  ready  to  build,  the  owner  should  have  plans 
and  specifications  prepared  by  an  architect  or  by  a  contractor 
who  has  access  to  an  architect's  office.  A  writer  on  the  subject 
says :  "The  house  was  never  erected  that  was  satisfactory 
structurally,  artistically  or  from  a  business  point  of  view  on 
which  properly  prepared  plans  and  specifications  were  not  em- 
ployed. The  size  of  the  house  has  nothing  to  do  with  the 
necessity  for  plans.  A  small  house  involves  about  the  same 
number  of  structural  points  and  details,  and  all  of  the  business 
hazards  and  complications,  of  a  large  one.  An  architect's 
knowledge  and  experience  should  save  the  owner  more  than 
the  cost  of  his  services  in  the  actual  construction  of  a  house,  to 
say  nothing  of  the  relief  from  business  care."  Building  con- 
tractors are  of  the  opinion,  however,  that  the  specifications 
prepared  by  an  architect  often  times  call  for  more  material 
than  is  actually  necessary. 

(9.)  Four  copies  of  the  plans  and  specifications  should 
be  prepared ;  blue  prints  of  the  plans  are  made  from  the  origi- 
nal tracing  paper  drawing,  and  carbon  copies  of  the  specifica- 
tions are  made  on  the  typewriter  at  one  writing.  The  plans 


118  HOW    TO    BUY    AND 

and  specifications  should  then  be  placed  in  the  hands  of  build- 
ing contractors  of  good  reputation,  for  competitive  bids,  and 
say  five  days  should  be  allowed  in  which  to  file  bids,  all  to  be 
filed  by  a  certain  hour  of  a  certain  day,  the  owner  reserving  the 
right  to  reject  any  and  all  bids,  it  being  understood  that  the 
successful  bidder  shall  sign  the  required  contract  and  give 
satisfactory  bond.  The  contract  for  the  entire  work  should  be 
let  to  one  responsible  contractor,  as  this  places  the  entire  re- 
sponsibility of  executing  the  work  upon  one  person,  and  is  the 
only  way  in  which  one  may  know  in  advance  just  what  the 
work  will  cost  when  completed.  Knowing  the  cost  in  ad- 
vance presupposes  that  the  owner  has  given  thorough  study 
to  the  minutest  detail,  and  has  had  everything  requisite  to  n 
complete  house  embodied  in  the  plans  and  specifications.  All 
special  mill  work  and  interior  finish  will  add  to  the  cost;  if 
"stock"  mouldings  and  "stock"  sizes  of  doors,  sash,  etc.,  are 
used  the  cost  can  be  kept  down. 

(10.)  After  the  contract  has  been  let,  the  job  should  be 
properly  superintended.  It  is  scarcely  possible  for  the  owner 
to  realize  the  value  of  the  plans  through  his  own  efforts,  as  this 
presupposes  that  he  knows  the  various  qualities  and  kinds  of 
materials,  and  the  several  methods  of  construction  as  well  as, 
or  better  than,  the  contractor.  The  architect  or  contractor 
who  prepared  the  plans  and  specifications  ought  to  make  the 
best  superintendent,  as  he  is  well  acquainted  with  what  is 
required;  but  where  the  superintendent  does  not  inspect  the 
work  oftener  than  once  in  every  two  or  three  days  or  once  a 
week,  the  workmen  can  cover  up  a  good  deal  of  inferior  work 
in  the  meantime.  Where  the  job  is  of  sufficient  size  to  war- 
rant doing  so,  the  superintendent  should  be  on  the  ground  all 
the  time.  In  any  case,  the  owner  should  give  as  much  atten- 
tion as  possible  to  the  work;  he  will  thereby  gain  a  knowledge 
of  the  construction  of  a  building  and  the  satisfaction  of  seeing 
what  has  actually  gone  into  such  construction  in  the  case  of 
his  own  building.  The  standards  of  excellence  of  con- 
tractors vary  as  does  their  characters.  Some  men  are  natur- 
ally thorough  and  honest  in  executing  work;  others  are  slip- 
shod and  indifferent;  as  their  natural  tendencies  are,  so  their 
work  will  be. 

(n.)     The   successful   bidder  should   sign   the   contract. 


REAL  ESTATE  AT  A  PROFIT  119 

Under  the  California  law  where  the  cost  of  the  construction, 
alteration  or  repair  of  any  structure  exceeds  one  thousand  dol- 
lars, the  contract  or  some  memorandum  thereof  must  be  in 
writing,  and  be  subscribed  by  the  parties  thereto,  and  contain 
the  names  of  the  parties,  a  description  of  the  property,  a  state- 
ment of  the  general  character  of  the  work  to  be  done,  the  total 
amount  to  be  paid,  the  amounts  of  the  partial  payments,  to- 
gether with  the  times  when  such  payments  shall  be  due  and 
payable ;  but  at  least  25  per  cent  of  the  whole  contract  price 
must  be  made  payable  at  least  thirty-five  days  after  the  final 
completion  of  the  contract.  No  part  of  the  price  must  be  made 
payable  or  be  paid  in  advance  of  the  commencement  of  the 
work.  See  Form  No.  49,  as  to  when  installments  on  the  con- 
tract price  are  ordinarily  made  payable  as  the  work  reaches 
certain  stages  of  completion.  The  owner  and  contractor 
should  each  sign  his  name  on  each  page  of  the  plans  and  speci- 
fications by  way  of  identification.  As  reference  must  be  made 
in  a  building  contract  to  the  plans  and  specifications,  such  a 
contract,  for  the  purpose  of  filing,  as  hereinafter  mentioned, 
consists  of  the  contract  and  the  plans  and  specifications,  and 
the  contract  so  constituted,  before  any  material  is  hauled  on 
the  ground  or  the  work  commenced,  should  be  filed  in  the 
office  of  the  County  Recorder  of  the  County  where  the  prop- 
erty is  situated.  The  filing  should  follow,  but  not  precede,  the 
filing  of  a  mortgage  on  same  premises  to  raise  money  with 
which  to  build.  One  dollar  is  the  fee  for  filing.  If  the  pro- 
visions of  the  law  are  not  complied  with,  the  contract  is  wholly 
void  and  no  recovery  can  be  had  thereon  by  either  party. 

(12.)  Formerly,  the  law  required  that  a  bond,  equal  in 
amount  to  at  least  25  per  cent  of  the  contract  price,  must  also 
be  filed  as  a  part  of  the  contract,  but  the  Supreme  Court  has 
recently  declared  the  bond  to  be  unnecessary.  As  such  bonds 
continue  to  be  filed,  however,  the  form  thereof  is  shown  in 
No.  50. 

(13.)  The  object  of  filing  the  contract  (including  the 
plans  and  specifications)  is  to  shield  the  owner  from  liability 
to  laborers,  material  men,  and  sub-contractors  beyond  the 
amount  of  the  contract  price,  and  to  afford  all  persons  who 
desire  to  know  information  as  to  whether  or  not  the  price, 


120  HOW    TO   BUY    AND 

times  of  payment  and  terms  of  the  contract  will  be  adequate 
security  for  the  labor  or  materials  about  to  be  furnished. 

(14.)  Payments  should  be  distributed  over  the  work  as 
indicated  in  Form  No.  49,  and  if  the  architect  is  supervising  the 
work,  should  be  made  on  his  certificate  as  in  said  form  indi- 
cated. If  the  owner  is  superintending  the  job,  he  should  take 
the  names  of  all  laborers  working  thereon,  and  of  all  parties 
furnishing  materials  therefor,  and  as  each  installment  becomes 
due  the  contractor,  the  owner  should  ascertain  if  all  such  par- 
ties have  been  paid  the  proportionate  part  due  them  up  to  that 
time.  In  some  cases,  the  contractor  is  required  to  turn  in  re- 
ceipts for  certain  payments  before  payments  are  made  to  him 
by  the  owner.  The  owner  should  be  very  careful  not  to  make 
any  payments  to  the  contractor  until  the  times  when  they  are 
due  under  the  contract.  The  owner  should  obtain  from  the 
contractor  all  inspection  certificates  for  plumbing,  wiring,  etc. 

(15.)  Within  ten  days  after  the  building  is  completed,  the 
owner  must  file  a  notice  of  completion.  (See  Form  No.  51.) 
The  owner  should  retain  in  his  possession  for  thirty-five  days 
after  filing  the  notice  of  completion,  twenty-five  per  cent  of  the 
contract  price  with  which  to  meet  any  bills  or  claims  not  paid 
by  the  contractor. 

(16.)  If  a  contractor  ceases  labor  on  an  unfinished  build- 
ing, the  owner  must,  within  forty  days  thereafter,  file  a  notice. 
(See  Form  No.  52.)  The  two  last  named  notices  are  to  be  filed 
in  the  office  of  the  County  Recorder. 

(17.)  Mechanics,  material  men,  contractors,  sub-contrac- 
tors, architects  and  others  have  preferred  liens,  to  the  extent 
of  the  whole  contract  price,  upon  real  property  for  labor  and 
materials  furnished  therefor.  Where  there  are  several  liens, 
they  take  precedence  in  the  following  order:  ist,  laborers; 
2nd,  material  men ;  3rd,  sub-contractors ;  4th,  contractor*. 
Such  liens  take  precedence  over  homesteads. 

(18.)  Every  person,  save  the  original  contractor,  claim- 
ing the  benefit  of  the  lien  law  must,  within  thirty  days  after  the 
completion  of  the  building,  file  for  record  with  the  County  Re- 
corder a  statement  of  his  claim,  such  claim  to  be  verified  upon 
oath.  (See  Form  No.  54  for  material  men,  and  Form  No.  55 
for  laborers.)  The  original  contractor  may  file  his  lien  within 


REAL  ESTATE  AT  A  PROFIT  121 

sixty  days  after  completion.  The  lien  attaches  for  a  period  of 
ninety  days,  and  within  that  time  proceedings  must  be  begun 
in  the  proper  court  to  enforce  the  lien. 

(19.)  Where  an  owner  leases  land,  or  sells  same  under  a 
contract  of  sale,  the  owner  retaining  the  title  in  his  own  name, 
with  the  understanding  that  buildings  will  be  placed  thereon  by 
the  lessee  or  purchaser,  such  owner  should  post  on  the  land, 
in  a  conspicuous  place,  not  later  than  three  days  after  such 
buildings  or  improvements  are  begun,  a  notice  (See  Form  No. 
56)  to  the  effect  that  he  will  not  be  responsible  for  such  build- 
ings or  improvements. 

(20.)  Where  the  contract  price  is  less  than  $1000,  the 
filing  of  contract  is  not  required. 

(21.)  There  are  many  vexations  and  annoyances  con- 
nected with  building.  Nevertheless,  the  .average  man,  rather 
than  to  purchase  a  house  already  built,  prefers  to  buy  a  lot  and 
erect  his  own  house.  Nearly  every  one  has  some  pet  plan 
which  he  wishes  to  see  constructed  and  which  he  firmly  believes 
will  be  a  little  better  than  anything  else  ever  built  in  the  house 
line.  There  is  an  old  saying  to  the  effect  that  "Fools  build 
houses ;  wise  men  live  in  them/' 

Sec.  125.     Of  Homesteads. 

(i.)  A  certain  amount  of  both  real  and  personal  property 
is,  by  the  laws  of  the  several  states,  exempt  from  liability  for 
the  debts  of  the  owner,  and  cannot  be  attached  and  sold,  pro- 
vided certain  steps  which  the  law  says  shall  be  complied  with, 
are  taken.  The  real  property  so  exempt  is  called  a  homestead. 
A  homestead  represents  the  dwelling  house  at  which  the  family 
resides,  and  outbuildings  of  every  kind  necessary  or  convenient 
for  family  use ;  it  may  include  a  farm  or  garden,  or  one  or 
more  city  lots  or  blocks.  The  only  tests  are  use  and  value. 

(2.)  The  right  of  homestead  may  be  exercised  by  the 
husband  and  wife  jointly,  by  the  husband  alone,  or  by  the  wife 
alone,  or  by  the  "head  of  a  family."  Any  person,  whether  mar- 
ried or  not,  may  be  the  head  of  a  family,  provided  he  or  she 
has  residing  on  the  premises  with  him  or  her  certain  minor 
relatives,  or  certain  other  relatives  as  specified  in  the  law,  who 
have  attained  the  age  of  majority  and  are  unable  to  support 
themselves. 


122  HOW    TO    BUY    AND 

(3.)  In  order  to  select  a  homestead,  the  claimant  must 
execute,  acknowledge  and  file  for  record  a  declaration  of  home- 
stead. (See  Forms  No.  57  and  58.)  If  the  claimant  is  mar- 
ried, the  selection  may  be  from  the  community  property,  or 
from  the  separate  property  of  the  husband,  or  from  the  separ- 
ate property  of  the  wife,  and  in  the  latter  case  her  consent 
must  be  shown  by  her  joining  in,  or  making,  the  declaration. 
In  order  to  impress  the  character  of  homestead  upon  the  prem- 
ises, the  claimant  must  be  actually  residing  there  at  the  time 
the  declaration  is  filed,  and,  in  California,  the  value  of  the 
homestead  must  not  exceed  $5000  if  selected  by  the  head  of  a 
family,  and  not  over  $1000  if  selected  by  any  other  person. 

(4.)  Both  the  husband  and  wife  must  join  in  a  deed  or 
mortgage  in  order  to  convey  or  incumber  land  on  which  a 
declaration  of  homestead  has  been  filed.  The  homestead  can 
be  abandoned  (See  Form  No.  59),  but  if  the  claimant  is  mar- 
ried, the  husband  and  wife  must  join  in  the  instrument  of 
abandonment.  If  the  husband  or  wife  becomes  hopelessly  in- 
sane, after  filing  declaration  of  homestead,  the  law  provides 
that  upon  appliaction  to,  and  order  of,  the  probate  court,  the 
husband  or  wife,  not  insane,  may  convey  or  incumber  the 
homestead. 

(5.)  The  word  "homestead"  also  has  reference  to  the 
right  of  citizens  of  the  United  States  to  enter  upon  and  appro- 
priate, or  pre-empt,  as  it  is  called,  160  acres  or  less  of  public 
lands,  the  title  to  which  is  acquired  after  the  expiration  of  five 
years,  during  which  the  claimant  must  have  resided  upon  or 
cultivated  said  lands  and  complied  with  certain  other  condi- 
tions and  paid  therefor  at  certain  prices. 

FORM  NO.  49— BUILDER'S  CONTRACT. 

ARTICLES  OF  AGREEMENT, 

Made  this  eleventh  day  of  February,  one  thousand  nine  hundred  and  five, 
between  W.  W.  Jones,  of  the  City  of  Los  Angeles,  County  of  Los  Angeles, 
State  of  California,  the  party  of  the  first  part,  and  C.  N.  Stratton,  of  the 
said  City  and  County,  State  aforesaid,  the  party  of  the  second  part, 

WITNESSETH  i  The  party  of  the  first  part  will  be  hereinafter  desig- 
nated as  the  Owner,  and  the  party  of  the  second  part  as  the  Contractor, 
singular  number  only  being  used ;  and  the  word  Architect  used  herein 
in  the  singular  shall  include  the  plural,  and  the  masculine  the  feminine. 

FIRST. — The  Contractor  agrees,  within  the  space  of  Sixty  (60)  work- 
ing days  from  and  after  February  n,  1905,  to  furnish  the  necessary  labor 


ESTATE  AT  A  PROFIT  123 

and  materials,  including  tools,  implements  and  appliances  required,  and 
perform  and  complete  in  a  workmanlike  manner  all  that  certain  two-story, 
seven-room  residence,  and  other  works  shown  and  described  in  and  by, 
and  in  conformity  with,  the  plans,  drawings  and  specifications  for  the  same 
made  by  Geo.  E.  Willis,  the  authorized  Architect  employed  by  the  Owner, 
and  which  are  signed  by  the  parties  hereto. 

SECOND. — Said  Architect  shall  provide  and  furnish  to  the  Contractor 
all  details  and  working  drawings  necessary  to  properly  delineate  said  plans 
and  specifications ;  and  the  work  is  to  be  done  and  the  materials  furnished 
in  accordance  therewith  under  the  direction  and  supervision  and  subject 
to  the  approval  of  said  Architect,  or  a  superintendent  selected  and  agreed 
upon  by  the  parties  hereto,  within  a  fair  and  equitable  construction  of  the 
true  intent  and  meaning  of  said  plans  and  specifications.  , 

THIRD. — The  time  during  which  the  Contractor  is  delayed  in  said 
work  by  the  acts  or  neglects  of  the  Owner  or  his  employees,  or  those  under 
him  by  contract  or  otherwise,  or  by  the  acts  of  God  which  the  Contractor 
could  not  have  reasonably  foreseen  and  provided  for,  or  by  stormy  and 
inclement  weather  which  delays  the  work,  or  by  any  strikes,  boycotts,  or 
like  obstructive  action  by  employee  or  labor  organizations,  or  by  any  lock- 
outs or  other  defensive  action  by  employers,  whether  general  or  individual, 
or  by  organizations  of  employers,  shall  be  added  to  the  aforesaid  time  for 
completion.  , 

FOURTH. — Said  building,  or  residence  aforesaid,  is  to  be  erected  upon 
a  lot  of  land  situated  in  the  City  of  Los  Angeles,  County  of  Los  Angeles, 
State  of  California,,  and  described  as  follows :  Lot  10  in  Block  D  of  the 
Harvard  Heights  Tract,  on  Cambridge  street,  between  Harvard  avenue 
and  Hobart  boulevard. 

FIFTH. — The  owner  agrees,  in  consideration  of  the  performance  of 
this  agreement  by  the  Contractor,  to  pay,  or  cause  to  be  paid,  to  the  Con- 
tractor, his  legal  representatives  or  assigns,  the  sum  of  Twenty-two  Hun- 
dred and  Twenty  Dollars  ($2220),  in  United  States  gold  coin,  at  times 
and  in  the  manner  following,  to-wit :  $200  when  brick  foundation  is  fin- 
ished, frame  up  arid  rafters  on ;  $400  when  plumbing  is  roughed  in,  build- 
ing is  enclosed,  roof  is  on  and  interior  is  ready  for  plastering;  $600  when 
inside  finish  is  on,  plumbing  completed  and  building  ready  for  painting; 
$465  when  completed  and  accepted ;  $555  in  36  days  after  notice  of  comple- 
tion has  been  filed. 

PROVIDED,  that  when  each  payment  or  installment  shall  become  due, 
and  at  the  final  completion  of  the  work,  certificates  in  writing  shall  be 
obtained  from  said  Architect,  stating  that  the  payment  or  installment  is 
'due  or  work  completed,  as  the  case  may  be,  and  the  amount  then  due; 
and  the  said  Architect  shall  at  said  times  deliver  said  certificates  under 
his  hand  to  the  Contractor,  or,  in  lieu  of  such  certificate,  shall  deliver  to 
the  Contractor,  in  writing,  under  his  hand,  a  just  and  true  reason  for 
not  issuing  the  certificates,  including  a  statement  of  the  defects,  if  any, 
to  be  remedied,  to  entitle  the  Contractor  to  the  certificate  or  certificates. 
And,  in  the  event  of  the  failure  of  the  Architect  to  furnish  and  deliver 


124  HOW   TO   BUY   AND 

said  certificates,  or  any  of  them,  or  in  lieu  thereof  the  writing  aforesaid, 
within  three  days  after  the  times  aforesaid,  and  after  demand  therefor 
made  in  writing  by  the  Contractor,  the  amount  which  may  be  claimed 
to  be  due  by  the  Contractor,  and  stated  in  the  said  demand  made  by  him 
for  the  certificate,  shall,  at  the  expiration  of  said  three  days,  become  due 
and  payable,  and  the  Owner  shall  be  liable  and  bound  to  pay  the  same  on 
demand. 

In  case  the  Architect  delivers  the  writing  aforesaid  in  lieu  of  the 
certificate,  then  a  compliance  by  the  Contractor  with  the  requirements  of 
said  writing  shall  entitle  the  Contractor  to  the  certificate. 

SIXTH. — For  any  delay  on  the  part  of  the  Owner  in  making  any 
ot  the  payments  or  installments  provided  for  in  this  contract  after  they 
shall  become  due  and  payable,  he  shall  be  liable  to  the  Contractor  for  any 
and  all  damages  which  the  latter  may  suffer;  and  such  delay  shall,  hi 
addition,  operate  as  an  additional  extension  of  the  time  for  completion 
aforesaid  for  the  length  of  time  of  such  delay.  Arid  such  delay,  if  for 
more  than  five  days  after  the  date  when  said  payments  or  installments 
shall  have  respectively  become  due  and  payable,  as  in  this  agreement  pro- 
vided, shall,  at  the  option  of  the  Contractor,  be  held  to  be  prevention  by 
the  Owner  of  performance  of  this  contract  by  the  Contractor. 

SEVENTH. — The  specifications  and  drawings  are  intended  to  co-oper- 
ate, so  that  any  work  exhibited  in  the  drawings  and  not  mentioned  in  the 
specifications,  or  vice  versa,  are  to  be  executed  the  same  as  if  both  men- 
tioned in  the  specifications  and  set  forth  in  the  drawings,  to  the  true  intent 
and  meaning  of  the  said  drawings  and  specifications  when  taken  together. 
But  no  part  of  said  specifications  that  is  in  conflict  with  any  portion  of  this 
agreement,  or  that  is  not  actually  descriptive  of  the  work  to  be  done  there- 
under, or  of  the  manner  in  which  the  said  work  is  to  be  executed,  shall 
be  considered  as  any  part  of  this  agreement,  but  shall  be  utterly  null  and 
void. 

EIGHTH. — Should  the  Owner  or  the  Architect,  at  any  time  during 
the  progress  of  the  work,  request  any  alterations  or  deviations  in,  additions 
to,  or  omissions  from,  this  contract  or  the  plans  or  specifications,  either 
of  them  shall  be  at  liberty  to  do  so,  and  the  same  shall  in  no  way  affect 
or  make  void  this  contract;  but  the  amount  thereof  shall  be  added  to,  or 
deducted  from,  the  amount  of  the  contract  price  aforesaid,  as  the  case  may 
be,  by  a  fair  and  reasonable  valuation.  And  this  contract  shall  be  held  to 
be  completed  when  the  work  is  finished  in  accordance  with  the  original 
plans,  as  amended  by  such  changes,  whatever  may  be  the  nature  or  extent 
thereof. 

NINTH. — The  rule  of  practice  to  be  observed  in  the  fulfillment  of  the 
last  foregoing  paragraph  (eight)  shall  be  that,  upon  the  demand  of  either 
the  Contractor,  Owner  or  Architect,  the  character  and  valuation  of  any 
or  all  changes,  omissions,  or  extra  work,  shall  be  agreed  upon  and  fixed 
in  writing,  signed  by  the  Owner  or  Architect  and  the  Contractor,  prior  to 
execution. 

TENTH. — Should  any  dispute  arise  between  the  Owner  and  Contractor, 


ESTATE  AT  A  PROFIT  125 

or  between  the  Contractor  and  Architect,  respecting  the  true  construction 
of  the  drawings  or  specifications,,  the  same  shall,  in  the  first  instance,  be 
decided  by  the  Architect;  but  should  either  of  the  parties  hereto  be  dissat- 
isfied with  the  justice  of  such  decision,  or  should  any  dispute  arise  between 
the  parties  hereto  respecting  the  valuation  of  extra  work,  work  done,  or 
work  omitted,  the  disputed  matter  shall  be  referred  to,  and  decided  by, 
two  competent  persons  who  are  experts  in  the  business  of  building, — one  to 
be  selected  by  the  Owner  or  Architect,  and  the  other  by  the  Contractor; 
and,  in  case  they  cannot  agree,  these  two  shall  select  an  umpire,  and  the 
decision  of  any  two  of  them  shall  be  binding  on  all  parties. 

ELEVENTH. — Should  the  Contractor  fail  to  complete  this  contract, 
and  the  works  provided  for  therein,  within  the  time  fixed  for  such  com- 
pletion, due  allowance  being  made  for  the  contingencies  provided  for 
herein,  he  shall  become  liable  to  the  Owner  for  all  loss  and  djamages 
which  the  latter  may  suffer  on  account  thereof,  but  not  to  exceed  the  sum 
of  $35  per  day  for  each  day  said  works  shall  remain  uncompleted  beyond 
such  time  for  completon. 

TWELFTH. — In  case  said  work  herein  provided  for  should,  before 
completion,  be  wholly  destroyed  by  fire,  'defective  soil,  earthquake  or  other 
act  of  God  which  the  Contractor  could  not  have  reasonably  foreseen  and 
provided  for,  then  the  loss  occasioned  thereby  shall  be  sustained  by  the 
Owner  to  the  extent  that  he  has  paid  installments  thereon,  or  that  may 
be  due  under  the  fifth  clause  of  this  contract;  and  the  loss  occasioned 
thereby  and  to  be  sustained  by  the  Contractor,  shall  be  for  the  uncom- 
pleted portion  of  said  work  upon  which  he  may  be  engaged  at  the  time  of 
the  loss,  and  for  which  no  payment  is  yet  due  under  said  fifth  clause  of 
this  contract. 

In  the  event  of  a  partial  destruction  of  said  work  by  any  of  the 
causes  above  named,  then  the  loss  to  be  sustained  by  the  Owner  shall  be 
in  the  proportion  that  the  amounts  of  installments  paid  or  due  bears  to 
the  total  amount  of  work  done  and  materials  furnished,  estimated  accord- 
ing to  said  contract  price,  and  the  balance  of  said  loss  to  be  sustained 
by  the  Contractor. 

THIRTEENTH. — The  payment  of  the  progress-payments  by  the  Owner 
shall  not  be  construed  as  an  absolute  acceptance  of  the  work  done  up  to 
the  time  of  such  payments;  but  the  entire  work  is  to  be  subject  to  the 
inspection  and  approval  of  the  Architect  or  Superintendent  at  the  time 
when  it  shall  be  claimed  by  the  Contractor  that  the  contract  and  works 
are  completed;  but  the  Architect  or  Superintendent  shall  exercise  all 
reasonable  diligence  in  the  discovery,  and  report  to  the  Contractor  as  the 
work  progresses,  of  materials  and  labors  which  are  not  satisfactory  to 
the  Architect  or  Superintendent,  so  as  to  avoid  unnecessary  trouble  and 
cost  to  the  Contractor  in  making  good  defective  parts. 

FOURTEENTH. — Should  the  Contractor,  at  any  time  during  the  progress 
of  the  work,  refuse  or  neglect,  without  the  fault  of  the  Owner,  Architect 
or  Superintendent,  to  supply  a  sufficiency  of  materials  or  workmen  to  com- 
plete the  contract  within  the  time  limited  herein,  due  allowance  being 


126  HOW  TO  BUY  AND 

made  for  the  contingencies  provided  for  herein,  for  a  period  of  more  than 
three  days  after  having  been  notified  by  the  owner  in  writing  to  furnish 
the  same,  the  Owner  shall  have  power  to  furnish  and  provide  said  ma- 
terial or  workmen  to  finish  the  said  work;  and  the  reasonable  expenses 
thereof  shall  be  deducted  from  the  amount  of  the  contract  price. 

IN  WITNESS  WHEREOF,  the  said  parties  to  these  presents  have  here- 
unto set  their  hands  and  seals,  the  day  and  year  first  above  written. 

W.  W.  JONES.  (Seal) 

C.  N.  STRATTON.        (Seal) 

FORM  NO.  50— BUILDERS'  BOND. 

BUILDERS'  BOND  TO  OWNER. 

WHEREAS,  C.  N.  Stratton,  of  the  County  of  Los  Angeles,  State  of 
California,  described  therein  as  party  of  the  second  part,  or  contractor, 
and  W.  W.  Jones,  of  the  County  and  State  aforesaid,  described  therein 
as  party  of  the  first  part,  or  owner,  have  made  and  executed  a  certain 
contract  in  writing,  dated  the  nth  day  of  February,  1905,  whereby  the 
said  party  of  the  second  part,  or  contractor,  has  agreed  to  perform  and 
complete  in  a  workmanlike  manner  for  said  party  of  the  first  part,  or 
owner,  all  the  materials  and  labor,  including  tools  and  appliances  of  every 
kind,  and  all  other  specified  work  of  a  2-story,  7-room  residence  build- 
ing to  be  erected  upon  the  premises  situated  in  the  City  of  Los  Angeles, 
County  of  Los  Angeles,  State  of  California,  and  described  as  follows, 
to-wit:  Lot  10  in  Block  D  of  the  Harvard  Heights  Tract,  on  Cambridge 
street,  between  Harvard  and  Hobart  streets;  and  the  party  of  the  first  part, 
or  owner,  has  agreed  to  pay  therefor  the  sum  of  Twenty-two  Hundred 
and  Twenty  Dollars,  said  contract  being  executed  and  delivered  herewith : 
Now,  THEREFORE,  KNOW  ALL  MEN  BY  THESE  PRESENTS  :  That  in 
consideration  of  the  above  premises,  we,  C.  N.  Stratton,  as  principal,  and 
P.  W.  McMillan  and  R.  M.  Brown,  as  sureties,  are  held  and  firmly 
bound  unto  said  W.  W.  Jones  in  the  sum  of  Five  Hundred  and  Fifty-five 
dollars,  for  which  payment  well  and  truly  to  be  made,  we  bind  ourselves, 
jointly  and  severally,  and  our  respective  heirs,  executors,  administrators 
and  assigns  firmly  by  these  presents. 

Sealed  with  our  seals,  and  dated  the  eleventh  day  of  February,  1905. 
The  condition  of  this  obligation  is  such  that  if  said  contractor  shall 
keep  and  strictly  perform  all  the  covenants  and  agreements  of  the  contract 
by  him  to  be  kept  and  performed,  and  shall,  on  or  before  thirty-five  days 
after  the  acceptance  of  said  building,  or  completion  of  said  contract  or 
improvement,  cancel  and  release  the  said  building  and  premises  from  all 
damage  claims  or  liens  that  may  have  accrued  against  the  same  in  and 
from  the  performance  of  said  contract,  and  shall  save  said  owner  free 
and  harmless  from  all  damage  therefrom,  all  as  in  said  contract  provided, 
then  the  above  obligation  to  be  void ;  otherwise  to  remain  in  full  force 
and  virtue. 

C.  N.  STRATTON.  (Seal) 
P.  W.  MCMILLAN.  (Seal) 
R.  M.  BROWN.  (Seal) 


ESTATE  AT  A  PROFIT  127 

State  of  California,  County  of  Los  Angeles,  ss. 

P.  W.  McMillan  and  R.  M.  Brownj  the  sureties  whose  names  are 
subscribed  to  the  above  undertaking,  being  severally  duly  sworn,  each 
for  himself,  says,  that  he  is  a  resident  and  freeholder  in  said  County  and 
State,  and  is  worth  the  sum  in  the  said  undertaking  specified  as  the  penalty 
thereof,  over  and  above  all  his  just  debts  and  liabilities,  exclusive  of 
property  exempt  from  execution. 

P.    W.    MCMILLAN, 
R.  M.  BROWN. 

Subscribed  and  sworn  to  before  me  this  eleventh  »day  of  February, 
1905. 
(Seal)  SAMUEL  BRISTOW, 

Notary  Public  in  and  for  Los  Angeles  County,  California. 

FORM  NO.  51— NOTICE  OF  COMPLETION. 

State  of  California,  County  of  Los  Angeles,  ss. 

W.  W.  Jones,  being  first  duly  sworn,  deposes  and  says:  That  he  is 
now,  and  was  upon  the  nth  day  of  February,  1905,  the  owner  in  fee 
simple  of  that  certain  real  property  situated  in  the  County  of  Los  An- 
geles, State  of  California,  and  particularly  described  as  follows,  to-wit: 

(Description.) 

That  as  such  owner  of  said  land,  affiant,  upon  the  nth  day  of 
February,  1905,  duly  entered  into  a  contract,  which  was  filed  in  the  office 
of  the  County  Recorder,  with  C.  N.  Stratton,  as  contractor,  for  the  erec- 
tion and  construction,  upon  the  land  above  described,  of  a  certain  building, 
to-wit:  a  two-story,  7-room  residence. 

The  said  building  has  been  duly  constructed  and  finished,  and  the 
same  was  actually  completed  and-  accepted  on  the  nth  day  of  April,  1905, 
and  ten  (10)  days  have  not  yet  elapsed  since  the  actual  completion  thereof. 

This  affidavit  is  intended  as  and  is  notice  to  all  mechanics,  material 
men,  sub-contractors  and  others,  who  have  performed  work  upon  or  fur- 
nished materials  to,  or  who  have  claims  or  liens  of  any  description  or 
kind  against  said  building  or  premises,  that  the  said  building  was  actually 
completed  on  the  day  hereinbefore  set  forth.  This  notice  is  given  and  re- 
corded in  pursuance  of  the  provisions  of  Section  1187  of  the  Code  of 
Civil  Procedure  of  the  State  of  California,  as  amended  March  27,  1897. 

W.  W.  JONES. 

Subscribed  and  sworn  to  before  me,  this  nth  day  of  April,  1905. 

SAMUEL  BRISTOW, 
Notary  Public  in  and  for  the  County  of  Los  Angeles,  State  of  California. 

FORM  NO.  52— NOTICE  OF  ABANDONMENT. 

State  of  California,  County  of  Los  Angeles,  ss. 

Hiram  White,  being  first  duly  sworn,  deposes  and  says,  that  he  is 
now  and  was  on  the  second  day  of  June,  1905,  the  owner  of  that  certain 
real  property  situated  in  the  City  and  County  of  Los  Angeles,  State  of 
California,  and  particularly  described  as  follows,  to-wit:  Lot  Eight  (8), 


128  HOW  TO  BUY  AND  SSU, 

in  Block  Four  (4),  of  the  Washington  Tract;  that  as  such  owner  of 
said  land,  affiant,  on  the  second  day  of  June,  1905,  duly  entered  into  a 
contract  with  Q.  A.  Sawyei  for  the  erection  and  construction  on  said 
land  of  a  certain  two-story,  frame  flat  building  at  Nos.  1217  and  1219 
West  Tenth  street,  in  said  city;  that  said  contract  was  filed  in  the  office 
of  the  County  Recorder ;  that  said  building  has  not  been  fully  constructed 
or  completed  and  finished  by  said  contractor,  Q.  A.  Sawyer,  and  that  the 
same  has  been  abandoned  and  left  unfinished  by  him,  and  that  the  seventh 
day  of  September,  1905,  was  the  day  on  which  said  abandonment  and 
cessation  of  labor  actually  occurredj  and  that  forty  days  have  not  elapsed 
since  the  actual  cessation  of  labor  thereon,  under  said  contract,  occurred 
and  said  contract  was  abandoned. 

This  affidavit  is  inten'ded  to  be  and  is  notice  to  all  mechanics,  ma- 
terial men,  sub-contractors  and  others  who  have  performed  work  upon 
or  furnished  material  for  or  who  have  claims  or  liens  of  any  description 
or  kind  against  said  building  or  premises;  that  said  building  was  actually 
abandoned  by  said  contractor,  and  the  cessation  of  labor  thereon  under 
said  contract  actually  occurred,  on  the  date  hereinabove  set  forth.  This 
notice  is  given  and  recorded  in  pursuance  of  provisions  of  Section  1187 
of  the  Code  of  Civil  Procedure  of  the  State  of  California,  as  amended 
March  27,  1897. 

HIRAM  WHITE. 

Subscribed  and  sworn  to  before  me  this  loth  day  of  October,  1905. 

SAMUEL  BRISTOW, 
Notary  Public  in  and  for  the  County  of  Los  Angeles,  State  of  California. 

FORM   NO.  53— NOTICE  TO  OWNER  TO  WITHHOLD   MONIES 

FROM  CONTRACTOR. 

MECHANICS'  LIEN.— NOTICE  TO  OWNER. 
C.  C.  P.,  SEC.  1184. 

John  Joiner  vs.  Solomon  Shylock. 
State  of  California,  County  of  Los  Angeles,  ss. 

To  Solomon  Shylock,  the  reputed  owner  of  the  two-story,  seven- 
room  house  now  being  erected  on  Cambridge  street,  Lot  Ten,  Block  D, 
of  Harvard  Heights  Tract,  at  Los  Angeles,  in  the  County  of  Los  Angeles, 
State  of  California : 

You  will  please  take  notice  that  I  have  performed  ten  days  carpenter 
labor  upon  above  mentioned  building,  at  the  rate  of  $3.50  per  day,  amount- 
ing to  $35;  that  James  Stout  is  the  name  of  the  contractor  of  said  build- 
ing, and  that  he  entered  into  a  verbal  agreement  with  me  whereby  said 
labor  was  performed;  that  said  contractor  has  not  paid  me  for  said  labor 
or  any  part  thereof,  and  you  are  hereby  notified  to  withhold  from  him  suffi- 
cient money  to  pay  my  said  claim  for  labor. 

Dated  April  loth,  1905. 

(Signed)  JOHN  JOINER. 


REAL,  ESTATE  AT  A  PROFIT  129 

FORM  NO.  54— MATERIAL  MAN'S  LIEN. 
NOTICE  OF  LIEN 

MATERIAL    MAN. 

Percy  Woodman,  doing  business  under  the  firm  name  and  style  of 
Woodman  Lumber  Co.,  vs.  Century  Building  Company,  a  Corporation. 
State  of  California,  County  of  Los  Angeles,  ss. 

NOTICE  is  hereby  given,  that  Percy  Woodman,  doing  business  under 
the  firm  name  and  style  of  Woodman  Lumber  Co.,  claims  a  lien  on  the 
premises  hereinafter  described  for  materials  to  be  used  and  which  were 
actually  used  in  the  construction  of  that  certain  building  or  structure, 
now  upon  that  certain  lot  and  parcel  of  land  situate  in  the  County  oi 
Los  Angeles,  State  of  California,  and  sought  to  be  charged  with  this 
lien,  and  described  as  follows,  to-wit:  That  certain  frame  dwelling  house 
and  structure  known  and  designated  as  No.  2707  Cambridge  street,  on 
that  certain  lot  known  as  Lot  10,  in  Block  D,  of  the  Harvard  Heights 
Tract,  as  per  map  recorded  in  the  office  of  the  County  Recorder  of  Los 
Angeles  County,  in  Book  6  of  Miscellaneous  Records,  at  page  293; 

That  said  Century  Building  Company,  a  Corporation,  is  and  was  at  all 
times  herein  mentioned,  the  owner  and  reputed  owner  of  said  premises,  and 
caused  said  building  or  structure  to  be  constructed  as  herein  mentioned; 

That  said  Century  Building  Company  is  the  name  of  the  person  or 
corporation  by  whom  claimant  was  employed,  and  for  whom  and  at  whose 
instance  and  request  the  material  herein  mentioned  was  furnished  to  &nd 
for  the  construction  of  said  building  upon  the  land  hereinabove  described; 

That  all  of  said  land  is  required  for  the  convenient  use  and  occupa- 
tion of  said  building  and  structure ; 

That  the  following  is  a  statement  of  the  claim  and  demand  of  said 
claimant,  and  of  the  terms  and  time  given  and  the  conditions  of  his  said 
contract;  that  said  material  was  furnished  between  the  7th  day  of  April, 
1905,  and  the  29th  day  of  April,  1905;  that  the  terms  were,  cash  on 
delivery,  amounting  in  all  to  Five  hundred  and  twenty-five  dollars  ($525), 
and  the  items  thereof,  dates  of  delivery  and  amounts  thereof,  are  shown 
by  the  statement  hereto  annexed,  following,  and  made  a  part  hereof, 
marked  "Exhibit  A" : 

"EXHIBIT  A.  Los  ANGELES,  CALV  July  ist,  1905. 

"Century  Building  Co. 

"To  Woodman  Lumber  Co.,  Dr. 

"Deliver  to  Lot  10,  Bock  D,  Harvard  Heights  Tract— 
"Date         Pieces         Dimensions         Kinds         Total         Price         Amounts 
4-8  81  2x4—18  O.  P.  972  $19  $18.46" 

Etc.    Etc. 

That  said  building  or  structure  has  been  completed  and  that  thirty 
days  have  not  elapsed  since  the  same  was  completed,  and  since  the  notice 
of  completion  thereof  was  duly  filed  by  said  owner; 

That  the  amount  of  the  contract  price  for  said  material  furnished 
as  aforesaid,  is  Five  hundred  and  twenty-five  dollars,  in  United  States 
gold  coin; 


130  HOW  TO  BUY  AND 

That  no  part  of  said  sum  due  claimant  as  aforesaid  has  been  paid 
and  that  the  sum  of  Five  hundred  and  twenty-five  dollars  in  gold  coin 
of  the  United  States  is  still  due  and  owing  thereon  to  said  claimant,  after 
deducting  all  just  credits  and  offsets. 

Wherefore,  said  claimant,  Woodman  Lumber  Co.,  claims  the  benefit 
of  the  law  relative  to  liens  of  mechanics  and  others  upon  real  property, 
to-wit:  Chapter  II.,  Title  IV.,  Part  III.,  of  the  Code  of  Civil  Procedure. 

PERCY  WOODMAN,  Claimant. 
State  of  California,  County  of  Los  Angeles,  ss. 

Percy  Woodman,  being  duly  sworn,  says :  I  am  the  lien  claimant 
above  named ;  I  have  heard  the  foregoing  claim  read,  and  know  the 
contents  thereof,  and  the  same  are  true. 

Subscribed  and  sworn  to  before  me  this  ist  day  of  July,  A.  D.  1905. 

SAMUEL  BRISTOW, 
Notary  Public  in  and  for  the  County  of  Los  Angeles,  State  of  California. 

FORM  NO.  55— MECHANIC'S  LIEN. 
NOTICE  OF  LIEN 

LABORER 

John  Joiner  vs.  Solomon  Shylock. 
State  of  Cnlifornia,  County  of  Los  Angeles,  ss. 

NOTICE  is  hereby  given,  that  John  Joiner,  at  the  time  hereinafter  men- 
tioned, performed  labor  upon  and  in  the  construction  of  that  certain  build- 
ing or  structure,  and  now  upon  that  certain  parcel  of  land  situated  in  the 
City  of  Los  Angeles,  County  of  Los  Angeles,  State  of  California,  and 
sought  to  be  charged  with  this  lien,  and  described  as  follows,  to-wit :  Lot 
44  in  Block  C  of  the  Golden  Gate  Tract,  as  per  map  recorded  in  Book  6, 
page  527,  Miscellaneous  Records,  in  the  office  of  the  County  Recorder  of 
the  County  of  Los  Angeles. 

That  Solomon  Shylock  is  the  name  of  the  owner,  and  reputed  owner, 
of  said  premises,  and  caused  said  building  or  structure  to  be  erected,  and 
the  name  and  nature  of  his  title  is  as  follows:  he  owns  the  same  in  fee 
simple. 

That  Edward  Eggleston  is  the  name  of  the  contractor  who,  on  the 
21  st  day  of  June,  A.  D.  1905,  as  such  contractor,  entered  into  a  contract 
with  said  claimant,  John  Joiner,  under  and  by  which  said  John  Joiner 
performed  labor  on  said  structure  or  dwelling  house,  and  the  following 
is  a  statement  of  the  terms,  time  given,  and  condition  of  said  contract, 
to-wit:  Such  labor  consisted  of  and  was  carpenter  work,  performed 
between  the  2ist  day  of  June  and  the  2d  day  of  July,  1905,  to-wit:  eleven 
days  labor  as  carpenter,  for  which  said  Edward  Eggleston  agreed  to 
pay  claimant  at  the  rate  of  $3.50  per  day,  making  due  claimant  the  sum 
of  $38.50;  no  special  terms  were  made  and  no  special  time  given. 

That  said  contract  has  been  fully  performed  on  the  part  of  said 
Edward  Eggleston,  and  the  same  was  completed,  and  the  work  on  said 
building,  or  structure,  finished,  on  the  loth  day  of  July,  A.  D.  1905,  and 
thirty  days  have  not  elapsed  since  the  same  was  completed,  and  sjaiid 
building,  or  structure,  finished. 


ESTATE  AT  A  PROFIT  131 

That  the  amount  of  the  contract  price  for  said  labor  so  furnished  as 
aforesaid  is  Thirty-eight  and  50-100  Dollars,  in  United  States  gold  coin. 

That  no  part  of  said  sum  of  Thirty-eight  and  50-100  Dollars,  United 
States  gold  coin,  has  been  paid  on  account  of  said  contract  price,  and  that 
the  sum  of  Thirty-eight  and  50-100  Dollars,  in  gold  coin  of  the  United 
States,  is  still  due  and  owing  and  unpaid  thereon  to  said  claimant,  after 
deducting  all  just  credits  and  offsets. 

Wherefore,  said  claimant,  John  Joiner,  claims  the  benefit  of  the  law 
'relative  to  liens  of  mechanics  and  others  upon  real  property,  to-w.it: 
Chapter  II.,  Title  IV.,  Part  III.,  of  the  Code  of  Civil  Procedure. 

JOHN  JOINER,  Claimant. 
BALL  &  BAIL,  Counsel  for  Claimant. 

(Verification  as  in  Form  No.  54.) 

FORM  NO.  56— NOTICE  BY  OWNER  THAT  HE  WILL  NOT  BE 
RESPONSIBLE  FOR  IMPROVEMENTS. 

NOTICE  BY  OWNER. 

NOTICE  is  HEREBY  GIVEN  to  all  whom  it  may  concern,  that  the  under- 
signed is  the  owner  of  the  land  on  which  this  notice  is  posted,  to-wit :  Lot 

,  in  Block  . .. .,  in  the  City  of  Los  Angeles,  County  of  Los  Angeles, 

State  of  California,  and  that,  as  such  owner,  he  will  not  be  responsible 
for  the  cost  of  the  construction,  alteration  or  repair  of  any  building  or  im- 
provement made  thereon,  and  will  oppose  any  attempt  to  place  a  lien  on 
said  land  by  reason  thereof. 

Dated  the day  of 190.... 

Owner. 

FORM  NO.  57— DECLARATION  OF  HOMESTEAD  BY  HUSBAND. 

KNOW  ALL  MEN  BY  THESE  PRESENTS:  That  I  do  hereby  certify  and 
declare  that  I  am  married  and  that  I  do  now,  at  the  time  of  making  this 
declaration,  actually  reside  with  my  family  on  the  land  and  premises  here- 
inafter described.  That  my  family  consists  of  a  wife  and  

children.     That  the  land  and  premises  on  which  I  reside  are  bounded  and 

described  as  follows,  to-wit :  Lying  and  being  in  the  

County  of   State  of ,  and 

particularly  described  as  follows : 

(Description.) 

That  it  is  my  intention  to  use  and  claim  the  said  lot  of  land  and 
premises  above  described,  together  with  the  dwelling-house  thereon,  and 
its  appurtenances,  as  a  Homestead,  and  I  do  hereby  select,  declare  and 
claim  the  same  as  a  Homestead; 

That  my  wife  has  not  made  any  declaration  of  homestead  on  said 
lands  and  I  therefore  make  this  declaration  for  the  joint  benefit  of  myself 
and  wife. 

That  the  actual  cash  value  of  said  property  I  estimate  to  be  $ 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  seal,  this 
day  of ,  one  thousand  nine  hundred 


(Seal) 

Signed,  Sealed  and  Delivered  in  the  Presence  of 


(  Acknowledgment. ) 


132  HOW  TO  BUY  AND 

FORM  NO.  58— DECLARATION  OF  HOMESTEAD  BY  WIFE. 

KNOW  ALL  MEN  BY  THESE  PRESENTS  :  That  I 

do  hereby  certify  and  declare  that  I  am  married  and  am  the  wife  of 

;  that  my  husband 

has  not  made  any  declaration  of  homestead,  and  I  therefore  make  this 
declaration  for  the  joint  benefit  of  myself  and  husband;  that  I  do  now,  at 

the  time  of  making  this  declaration,  actually  reside  with  my 

on  the  land  and  premises  described  as  follows,  to-wit:  Lying  and  being 

in  the  County  of State  of 

and  bounded  and  described  as  follows : 

(Description.) 

That  it  is  my  intention  to  use  and  claim  the  said  lot  of  land  anid 
premises  above  described,  together  with  the  dwelling-house  thereon,  and 
its  appurtenances,  as  a  Homestead,  and  I  do  hereby  select,  declare  and 
claim  the  same  as  a  Homestead. 

That  the  actual  cash  value  of  said  property  I  estimate  to  be  $ 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  seal,  this 

day  of ,  one  thousand  nine  hundred 

(Seal) 

Signed,  Sealed  and  Delivered  in  the  Presence  of 


(Acknowledgment ) 

FORM  NO.  50— ABANDONMENT  OF  HOMESTEAD. 

KNOW  ALL  MEN  BY  THESE  PRESENTS  :    That  we 

and ,  husband  and  wife 

do hereby  abandon,  release  and  discharge  from  any  and  all  claim  by 

us,  as  a  Homestead,  the  lot  of  land  and  premises,  situate,  lying  and  being 

in  the County  of of , 

bounded  and  described  as  follows,  to-wit: 

(Description.) 
TOGETHER  with  the  tenements  and  apurtenances  thereunto  belonging, 

IN   WITNESS  WHEREOF, ha hereunto   set 

hand.  ..and  seal...  this day  of one  thousand 

nine  hundred  and 

(Seal) 

(Seal) 

Signed,  Sealed  and  Delivered  in  the  Presence  of 


(Acknowledgment.) 


R£AL  ESTATE  AT  A  PROFIT  133 

CHAPTER  IX. 

MISCELLANEOUS  MATTERS  AFFECTING   REAL  ESTATE 

Easements — Rights  of  Way  and  Party  Walls — Leases — Rights  of  Landlord  and 
Tenant — Notices  Where  Time  Is,  or  Is  Not,  Agreed  Upon — Leases  of  Dwellings, 
Farm  Lands,  Oil  Lands  and  Contract  for  Drilling  Oil  Well — Appropriating  Water — 
Powers  of  Attorney — Transferring  Title  by  the  Torrens  System — Locating  Mining 
Claims — Petitions  to  Public  Bodies  for  Roads  and  Rights  of  Way — Executing  and 
Revoking  Wills. 

Sec.  126.     Easements. 

(i.)  An  easement  is  a  right  in  the  owner  of  one  parcel 
of  land  to  use  the  land  of  another  for  some  special  purpose; 
as  where  A,  who  owns  land  which  does  not  reach  to  the  pub- 
lic road,  secures  from  B  a  right  of  way  for  a  road  across  the 
land  of  B  to  the  public  road. 

(2.)  The  land  to  which  an  easement  is  attached,  in  the 
above  case,  A's,  is  called  the  dominant  tenement,  and  the  land 
upon  which  the  burden  or  servitude  is  laid,  in  this  case  B's, 
is  called  the  servient  tenement. 

(3.)  The  principal  easements  are  rights  of  way  for  roads, 
pipe  lines  (See  Form  No.  84),  or  telephone  lines,  the  right 
to  transact  business  upon  land,  the  right  to  use  a  wall  as  a 
party  wall  (See  Form  No.  83),  and  the  right  to  have  the 
whole  of  a  division  fence  maintained  by  a  co-terminous  owner. 
Co-terminous  owners  are  mutually  bound  equally  to  maintain 
the  division  fences,  boundaries  and  monuments  between  them, 
and  any  departure  from  the  rule  is  properly  the  subject  of  an 
agreement. 

(4.)  Easements  are  created  by  written  instruments 
which  are  executed,  acknowledged  and  recorded  the  same  as 
deeds,  and  appear  as  exceptions  in  abstracts  and  certificates 
of  title. 

(5.)  A  party  wall  is  a  wall  built  on  the  dividing  line  of 
the  lands  of  two  adjoining  owners.  Where  a  .party  wall  rests 
partly  upon  the  soil  of  each  owner,  and  was  constructed  as  a 
party  wall,  each  owner  is  possessed  in  severalty  of  his  own  soil 
up  to  the  dividing  line,  and  of  that  portion  of  the  wall  which 
rests  upon  it,  but  the  soil  of  each,  with  the  wall  belonging  to 
him,  is  burdened  with  an  easement  or  servitude  in  favor  of 
the  other,  to  the  end  that  it  may  afford  a  support  to  the  wall 
and  building  of  such  other.  (See  Form  No.  83.) 


134  HOW  TO  BUY  AND 

Sec.  127.     Of  Leases. 

(i.)  A  lease  is  a  conveyance  of  lands  or  tenements  for 
a  certain  length  of  time  by  the  owner,  who,  in  such  case,  is 
called  the  landlord  or  lessor,  to  another  person,  called  the  les- 
see or  tenant,  for  a  certain  consideration,  called  rent. 

(2.)  The  laws  of  the  several  States  fix  the  length  of  time 
for  which  a  lease  may  be  made  in  certain  cases.  In  Califor- 
nia, for  example,  a  lease  of  lands  for  agricultural  purposes,  in 
which  is  reserved  to  the  owner  any  rent  or  service  of  any  kind, 
cannot  be  made  for  more  than  ten  years,  and  a  lease  of  a  city 
or  town  lot  cannot  be  made  for  more  than  fifty  years. 

(3.)  A  lease  for  a  longer  period  than  one  year  must  be  in 
writing;  in  fact,  all  leases  ought  to  be  in  writing.  As  many 
copies  of  a  lease  should  be  made  as  there  are  parties  to  it,  and 
one  copy  should  be  retained  by  each  party.  If  personal  prop- 
erty is  also  let  in  connection  with  real  estate,  an  inventory  of 
such  personal  property  should  be  made,  and  be  attached  to 
the  lease,  and  be  referred  to  in  the  body  of  the  lease.  A  lease 
of  lands  for  a  term  of  years  should  be  acknowledged,  and  the 
acquisition  or  disposition  by  a  mining  corporation  of  mining 
ground  should  have  attached  the  ratification  of  more  than  two- 
thirds  of  the  stockholders  of  such  corporation,  as  indicated 
in  Form  No.  19. 

(4.)  The  lessor  of  a  building  intended  to  be  occupied  by 
human  beings  must  put  it  into  a  condition  fit  for  such  occu- 
pancy, in  the  absence  of  any  agreement  to  the  contrary,  and  re- 
pair all  subsequent  dilapidations  which  render  it  untenantable. 
But  the  lessee  must  repair  all  deteriorations  or  injuries  caused 
to  the  building  occasioned  by  his  own  ordinary  negligence. 

(5.)  Where  the  premises  are  held  by  the  day,  week, 
month,  quarter,  or  year,  rent  is  payable  at  the  end  of  the  re- 
spective periods  as  it  successively  becomes  due,  when  there  is 
no  usage  or  contract  to  the  contrary.  In  the  majority  of  cases, 
however,  there  is  a  contract  between  the  landlord  and  the  ten- 
ant to  the  effect  that  the  rent  shall  be  payable  in  advance  for 
a  stated  period,  as  such  advance  payment  assures  the  landlord 
that  his  tenant  will  remain  for  another  .such  period,  and  if  the 
tenant  sees  fit  to  remove  before  the  period  expires,  the  land- 
lord has  an  opportunity  to  secure  another  tenant  without  loss 
of  rent. 


ESTATE  AT  A  PROFIT  135 

(6.)  The  hiring  of  a  thing  terminates,  at  the  end  of  the 
term  agreed  upon,  or  by  the  mutual  consent  of  the  parties,  or 
by  the  lessee  acquiring  a  title  to  the  premises  superior  to  that 
of  his  landlord,  or  and  by  the  destruction  of  the  tenement. 

(7.)  If  a  lessee  of  real  property  remains  in  possession  af- 
ter the  expiration  of  the  term  agreed  upon,  and  the  landlord 
accepts  rent  from  him,  the  parties  are  presumed  to  have  re- 
newed the  lease  for  the  same  terms  and  for  the  same  time,  not 
exceeding  one  month,  when  the  rent  is  payable  monthly,  but 
not  longer,  in  any  case,  than  one  year. 

(8.)  Where  no  time  is  agreed  upon,  the  landlord,  if  he 
wishes  to  terminate  the  lease,  must  give  the  tenant  notice  in 
writing,  specifying  the  time  within  which  the  tenant  must  re- 
move and  giving  him  one  month  in  which  to  do  so.  (See  Form 
No.  67).  After  the  time  mentioned  in  the  notice  has  ex- 
pired, if  the  tenant  has  not  removed,  the  landlord  may  insti- 
tute legal  proceedings  against  him. 

(9.)  Where  the  time  is  agreed  upon,  three  days'  notice 
only  is  required  to  be  given  by  the  landlord  to  the  tenant. 
(See  Form  No.  68).  The  notice  may  be  given  at  any  time 
within  one  year  after  the  rent  falls  due,  and  should  be  served 
on  any  sub-tenant  as  well  as  on  the  tenant  of  the  premises. 
Like  notice  may  be  served  when  any  condition  of  the  lease 
is  broken,  and  in  some  cases  provision  is  made  in  the  lease  how 
such  notice  shall  be  served,  and  that  forfeiture  will  follow  if 
the  tenant  fails  to  perform  the  covenant  complained  of.  (See 
Form  No.  64.) 

(10.)  In  all  leases  of  lands  or  tenements,  or  of  any  inter- 
est therein,  from  month  to  month,  the  landlord,  by  serving 
written  notice  upon  the  tenant  at  least  fifteen  days  before  the 
expiration  of  the  month,  may  change  the  terms  of  the  lease  to 
take  effect  at  the  expiration  of  the  month,  and  if  the  tenant 
continues  to  hold  the  premises,  the  rent  and  terms  specified  in 
the  notice  becomes  part  of  the  lease.  California  Civil  Code,  Sec. 
827.  (See  Form  No.  69.) 

(n.)  Two  forms  of  farm  leases  are  shown;  also  two 
forms  of  oil  leases,  and,  in  connection  with  the  latter,  a  con- 
tract for  the  drilling  of  an  oil  well.  (Nos.  61-65). 

Sec.  128.     Appropriating  Water. 


136  HOW  TO  BUY  AND  SELL 

(i.)  The  doctrine  of  appropriation  of  water  from  streams 
;s  peculiar  to  trie  Western  States,  and  owes  its  origin  to  the 
necessities  of  the  arid  region.  The  doctrine  is  that  the  unap- 
propriated waters  of  natural  streams  shall  be  subject  to  ap- 
propriation for  irrigation  and  other  useful  purposes.  To  con- 
stitute a  valid  appropriation  of  water,  there  must  be  an  actual 
diversion  of  the  water  with  the  intent  to  apply  it  to  some 
beneficial  use,  followed  by  an  actual  application  of  it  to  that 
use  within  a  reasonable  time.  As  between  appropriators,  the 
one  first  in  time  is  first  in  right. 

(2.)  A  person  desiring  to  appropriate  water  must  post  a 
notice,  substantially  as  per  Form  No.  70,  at  the  point  of  in- 
tended diversion,  and  a  copy  of  such  notice  must,  within  ten 
days  after  it  is  posted,  be  recorded  in  trie  office  of  the  County 
Recorder  of  the  county  in  which  it  is  posted. 

Within  sixty  days  after  the  notice  is  posted,  the  claimant 
must  commence  the  excavation  or  construction  of  the  works 
in  which  he  intends  to  divert  the  water  and  prosecute  the  work 
diligently  to  completion,  by  which  is  meant  conducting  the 
Avater  to  the  place  of  intended  use.  By  a  compliance  with  the 
requirements  of  the  law,  the  right  to  the  water  relates  back  to 
the  time  the  notice  was  posted. 

Sec.  129.     Powers  of  Attorney. 

(i.)  A  power  of  attorney  is  a  written  authorization  exe- 
cuted by  one  person,  called  the  principal,  directing  another 
person,  called  the  attorney  in  fact,  to  perform  some  act  or  acts 
for  the  principal.  A  power  of  attorney  is  deemed  to  be  in  ef- 
fect until  revoked  or  until  the  death  of  the  principal. 

(2.)  The  power  of  attorney  to  execute  a  deed,  mortgage 
or  other  instrument  affecting  real  property,  must  be  in  writ- 
ing and  be  subscribed,  acknowledged  or  approved,  and  certi- 
fied and  recorded,  in  like  manner  as  grants  of  property. 

(3.)  In  California,  a  married  woman  may  make,  execute 
and  revoke  powers  of  attorney  for  the  sale,  conveyance  or  in- 
cumbrance  of  her  real  or  personal  estate  with  the  same  affect 
as  if  she  were  unmarried. 

(4.)  A  power  of  attorney  may  be  revoked  at  the  pleasure 
of  the  principal,  unless  the  attorney  in  fact,  or  some  third  per- 
son, has  an  interest  in  the  subject  matter  of  the  power. 

(5.)     A  power- of  attorney  which  has  been  recorded  and 


REAIy  ESTATE  AT  A  PROFIT  137 

which  affects  real  estate  is  not  revoked  by  any  act  of  the  party 
by  whom  it  was  executed,  unless  the  instrument  containing 
such  revocation  is  acknowledged  and  certified  and  recorded  in 
the  same  office  in  which  the  instrument  containing  the  power 
was  recorded. 

(6.)  An  attorney  in  fact,  in  executing  an  instrument 
transferring  any  estate  in  real  property,  must  subscribe  the 
name  of  his  principal  to  it  and  his  own  name  as  attorney  in 
fact.  The  name  of  trie  principal  is  recited  in  the  body  of  the 
instrument  and  the  signature  is  made  thus :  "John  Jones,  by 
his  attorney  in  fact,  Peter  Brown." 

Sec.  130.     Torrens  Land  Titles. 

In  1897  the  California  Legislature  passed  an  act  to  pro- 
vide for  the  certification  of  land  titles  in  accordance  with  the 
Torrens  system,  but  the  system  has  not  become  popular,  for 
the  reason,  perhaps,  that  the  first  step  is  the  filing  of  a  veri- 
fied petition  in  trie  Superior  Court  to  have  a  decree  entered 
bringing  the  land  described  in  the  petition  under  the  operation 
of  the  act. 

(i.)  The  act  is  intended,  its  advocates  claim,  to  make 
the  State  the  guarantor  of  all  titles  registered  under  the  law; 
to  put  beyond  possibility  of  question  or  contest  title  to  real 
estate  in  one  in  whom  title  is  found  to  reside ;  to  render  labor- 
ious search  of  title  unnecessary,  and  to  economize  the  cost  of 
search ;  to  present  at  any  moment  a  perfect  and  guaranteed  in- 
dex of  all  matters  and  things  relating  to  or  affecting  title ;  to 
enable  the  owner  of  property  to  so  leave  "his  estate,  so  far  as 
realty  is  concerned,  that  it  will  be  practically  beyond  assault 
and  contest;  to  simplify  trie  method  of  transfer  and  incum- 
brance,  and  greatly  reduce  the  cost  of  the  same ;  to  economize 
in  time  of  transfer,  and  largely  to  be  preventive  of  litigation. 
Finally,  it  aims  to  enable  an  owner  of  property  to  clear  his 
title  of  clouds,  and  make  a  judicial  record  of  its  actual  condi- 
tion that  shall  be  final  and  conclusive. 

(2.)  Land  is  brought  under  the  operation  of  the  act  vol- 
untarily only  by  petition  of  the  owner  and  by  order  of  court. 
The  petition  sets  out  all  the  facts  relative  to  the  claim  of  the 
owner  to  the  real  estate,  and  is  accompanied  by  a  plat  of  the 
land,  and  an  abstract  of  the  title  made  by  a  searcher  who  has 


138  HOW    TO   BUY   AND 

given  official  bonds  against  damages  and  costs  for  an)'  error. 

(3.)  The  Superior  Court  sets  a  time  for  hearing  the  ap- 
plication to  register  and  gives  notice  to  all  interested  (See 
Form  No.  76),  and  to  owners  of  adjoining  lands.  Any  one 
interested  may  appear  at  the  hearing,  when  evidence  may  be 
taken.  If  it  is  found  that  the  applicant  is  the  owner,  and  that 
all  defects  in  the  title  have  been  cured,  a  decree  to  that  effect 
is  entered,  whereupon  the  County  Registrar  makes  the  original 
certificate  of  title  and  proceeds  to  bring  the  land  under  the 
operation  of  the  act  and  supplies  the  owner  with  a  duplicate 
certificate.  (See  Form  No.  77.) 

(4.)  The  original  certificates  of  title  are  to  be  recorded 
with  all  memorials  and  notations  of  the  certificate,  or  relating 
to  it.  Every  title  certificate  is  to  bear  a  number  correspond- 
ing to  the  folio  of  registration  on  the  registration  books.  Every 
transfer  of  title  is  deemed  registered,  when  the  new  certificate 
to  the  transferee  has  been  marked,  as  in  case  of  the  first  certi- 
ficate, and  all  dealings  regarding  the  land  are  deemed  regis- 
tered when  the  memorial  or  notation  is  entered  on  the  register. 
Any  one  aggrieved  by  any  act  or  refusal  of  the  Registrar,  may 
bring  an  action  to  have  the  matter  determined. 

(5.)  If  part  of  the  land  is  sold,  a  new  duplicate  certificate 
issues  for  the  unsold  portion.  The  Registrar  is  to  keep  all 
papers  filed  regarding  title  and  is  to  furnish  copies  to  any  one 
on  demand  and  payment  of  a  fee  therefor,  but  shall  endorse  on 
the  copy  in  red  ink,  "No  rights  conveyed  hereby." 

(6.)  An  indorsement  on  a  certificate  substantially  as  fol- 
lows: "I  grant  to  the  real  property  within  described," 

when  duly  acknowledged,  will  be  sufficient  to  transfer  title. 
A  deed  or  instrument  purporting  to  deal  with  registered  land — 
except  a  will  or  lease  for  a  year — has  only  the  effect  of  a  con- 
tract, and  is  authority  to  the  Registrar  to  make  note  of  the 
transfer,  on  compliance  with  the  terms  of  the  act.  If  such  an 
instrument  is  filed  with  the  Registrar,  he  notes  the  fact  on  the 
original  certificate  thus:  "transferred,"  "mortgaged"  or  other- 
wise. 

Sec.  131.     Locating  Mining  Lands. 

(i.)  The  public  lands  of  the  United  States,  open  to  entry 
by  citizens  of  the  United  States,  over  twenty-one  years  of  age, 


REAL  ESTATE  AT  A  PROFIT  139 

are  classified  as  agricultural,  desert,  timber,  stone,  coal,  min- 
eral and  saline  lands.  For  full  details  as  to  the  methods  of 
procedure  by  which  title  is  acquired  to  these  several  kinds  of 
land  see  the  American  Mining  Code  and  American  Settler's 
Guide. 

(2.)  There  are  two  kinds  of  mining  claims,  quartz  or 
lode  claims,  and  placer  claims.  A  lode  claim  may  be  located 
for  fifteen  hundred  feet  along  a  mineral  vein,  and  in  width  for 
three  hundred  feet  on  each  side  of  the  vein,  making  a  claim 
of  not  exceeding  1500  feet  in  length  by  600  feet  in  width.  On  a 
quartz  claim  a  discovery  of  mineral  must  be  made  before  lo- 
cation. 

(3.)  A  placer  claim  may  be  located  at  the  rate  of  twenty 
acres  for  each  locator  and  an  association  of  not  exceeding  eight 
locators  may  locate  up  to  one  hundred  and  sixty  acres.  A 
placer  claim  may  be  located  before  mineral  is  actually  discov- 
ered, but  a  patent  cannot  be  obtained  until  mineral  has  been 
discovered.  Petroleum,  brea,  natural  gas  and  asphaltum  are 
entered  as  placer  claims. 

(4.)  To  make  a  valid  location,  the  claim  must  be  dis- 
tinctly marked  on  the  ground  by  reference  to  some  natural  ob- 
ject or  permanent  monument  so  that  the  boundaries  of  the 
claim  can  be  readily  traced.  Such  natural  objects  or  perma- 
nent monuments  may  consist  of  stone  monuments,  mountain 
peaks,  blazed  trees,  confluents  of  streams,  or  the  boundaries 
or  monuments  of  adjoining  claims.  Marking  the  claim  on  the 
ground  determines  the  rights  of  the  claimant  as  between  him- 
self and  adjoining  government  land  and  notifies  third  parties 
of  his  rights. 

(5.)  When  the  claimant  has  located  his  claim,  he  must 
prepare  a  notice,  in  which  the  claim  will  be  described  accord- 
ing to  the  location  boundaries,  for  the  purpose  of  identifying 
the  claim.  The  notice  must  also  set  forth  the  names  of  the 
locators,  the  date  of  the  location  and  usually  the  name  of  the 
claim.  (See  Form  No.  78  for  Lode  Claim  and  No.  79  for 
Placer  Claim.) 

(6.)  The  miners  in  a  certain  locality  may  form  a  mining 
district,  and  make  regulations  not  in  conflict  with  the  laws  of 
the  United  States  and  of  the  State  in  which  the  district  is  sit- 


140  HOW    TO    BUY    AND 

uate,  governing  the  location,  manner  of  recording  the  location 
notice,  amount  of  work  necessary  to  be  done,  and  rate  per 
day  at  which  such  work  shall  be  computed,  etc.  Such  districts 
usually  appoint  a  mining  recorder  and  require  that  all  location 
notices  and  proofs  of  annual  work  shall  be  recorded  in  books 
kept  in  his  office  in  the  district. 

(7.)  The  claimant  posts  one  copy  of  his  notice  on  the 
claim,  and  files  a  duplicate  with  the  mining  recorder  of  the  dis- 
trict. It  is  the  practice,  in  some  sections  to  have  such  notice 
also  recorded  in  the  permanent  records  in  the  office  of  the 
County  Recorder  of  trie  county  in  which  the  land  is  situate; 
and  in  California,  the  State  law  requires  that  the  affidavit  of 
annual  assessment  work  shall  be  recorded  in  the  County  Re- 
corder's office. 

(8.)  At  least  one  hundred  dollars  worth  of  work  or  im- 
provements must  be  done  on  each  claim  each  year,  counting 
from  the  first  day  of  January  next  succeeding  trie  date  of  lo- 
cation, until  patent  is  obtained,  whether  the  claim  is  a  lode 
claim  or  consists  of  twenty  or  more  acres  of  placer  mining 
ground.  Such  work  is  usually  done  in  the  latter  part  of  the 
year,  and  an  affidavit  of  assessment  work  is  then  filed  in  the 
office  of  the  County  Recorder.  A  failure  to  do  the  requisite 
work  and  file  the  affidavit  within  the  required  time,  leaves  the 
claim  open  to  re-location.  Labor  done  for  the  direct  benefit  of 
the  claim,  though  not  done  on  the  claim  itself,  may  be  applied 
as  annual  assessment  work.  (See  Form  No.  80.) 

(9.)  At  least  five  hundred  dollars  in  labor  and  improve- 
ments must  be  expended  on  the  claim,  and  a  discovery  of  min- 
eral made  thereon,  before  application  for  patent  can  be  made 
through  the  nearest  land  office. 

Sec.  132.     Of  Petitions. 

In  some  cases,  easements  for  roads  and  rights  of  way,  etc.. 
are  to  be  obtained  from  public  bodies,  by  means  of  petitions, 
and  suggestions  for  these  are  set  forth  in  Forms  Nos.  81  and 
82. 

Sec.  133.     Of  Wills. 

(i.)  A  Will  is  a  disposition  of  real  and  personal  prop- 
erty by  a  person,  called  the  testator,  to  take  effect  after  his 
death.  Every  person  of  sound  mind,  and  over  eighteen  years 


REAL  ESTATE  AT  A  PROFIT  141 

of  age,  may  by  his  last  will,  dispose  of  all  his  real  and  per- 
sonal estate,  subject  to  the  payment  of  his  debts. 

(2.)  Every  one  who  has  property,  should  make  a  will  if 
for  no  other  reason  than  to  appoint  an  executor,  and,  if  de- 
sired, to  exempt  the  executor  from  giving  bonds. 

(3.)  A  married  woman,  under  the  California  law,  may 
make,  alter  and  revoke  her  will  in  like  manner  as  if  she  were 
single. 

(4.)  An  intestate  is  one  who,  having  power  to  make  a 
will,  does  not  make  it,  or  who  makes  a  defective  will.  His 
estate  descends  to  his  heirs  and  is  managed  by  an  adminis- 
trator. 

(5.)  An  olographic  will  is  one  that  is  entirely  written, 
dated  and  signed  by  the  hand  of  the  testator  himself.  It  need 
not  be  witnessed.  (See  Form  No.  85.) 

(6.)  Any  other  written  will  must  be  executed  and  at- 
tested with  certain  formalities,  namely : 

(a)  It  must  be  subscribed  at  the  end  by  the  testator  him- 
self,  or   some  person   in   his  presence   and   by   his   direction 
must  sign  his  name  for  him ; 

(b)  The  signing  must  be  made  in  the  presence  of  two  at- 
testing witnesses,  or  the  testator  must  acknowledge  to  such 
witnesses  that  the  signature  is  his  or  was  made  by  his  author- 
ity; 

(c)  The  testator  must,  at  the  time  of  signing  or  when  he 
acknowledges  that  the  signature  is  his,  declare  to  the  wit- 
nesses that  the  instrument  is  his  will,  and  each  of  the  witnesses 
must,  thereupon,  sign  his  name  as  a  witness,  at  the  end  of  the 
will,  after  a  witness-clause,  as  shown  in  Form  No.  86. 

(7.)  The  statutes  of  the  several  States  place  limita- 
tions on  the  will-making  power,  as,  for  example,  in  Cali-« 
fornia,  the  husband  has  power  to  dispose  of  only  one-half  of 
the  community  property;  a  married  woman  can  only  will  her 
separate  property;  only  one-third  of  an  estate  can  be  devised 
to  charity ;  certain  kinds  of  corporations  cannot  take  prop- 
erty under  a  will ;  trusts  of  a  certain  character  can  only  be 
declared,  etc.,  etc.  If  the  property  interests  involved  are  of 
any  magnitude,  it  is  advisable  for  the  testator  to  procure  the 
services  of  a  competent  attorney  in  making  his  will. 


142  HOW    TO    BUY    AND 

(8.)  Wills  are  revoked  by  certain  acts,  as  where  a 
woman  marries  after  making  her  will;  or  where  a  man  mar- 
ries after  making  his  will  and  does  not  provide  for  his  wife 
by  marriage  contract  or  by  will ;  also  by  the  testator  burning, 
tearing,  cancelling,  obliterating  or  destroying  his  will  with 
the  intention  of  revoking  it.  If  so  cancelled  or  destroyed  by 
any  person  other  than  the  testator,  the  fact  of  such  cancella- 
tion or  destruction,  and  that  the  testator  directed  the  same  to 
be  done,  must  be  proved  by  two  witnesses.  Wills  may  be 
revoked  in  writing,  but  such  writing  must  be  executed  with 
the  same  formality  as  the  will. 

(9.)     A  codicil  is  an  addition  to,  or  modification  of  a  will. 

FORM  NO.  60— LEASE  OF  HOUSE  OR  OTHER  DWELLING. 

THIS  LEASE  AND  AGREEMENT,  made  and  entered  into,  in  duplicate, 
this  i6th  day  of  August,  A.  D.  1905,  by  and  between  Allen  H.  Avery, 
the  party  of  the  first  part,  and  Thomas  B.  Longstreet,  the  party  of  the 
second  part,  each  of  said  parties  being  a  resident  of  the  City  of  Los  An- 
geles, County  of  Los  Angeles,  State  of  California,  WITNESSETH  :  That 
for  and  in  consideration  of  the  payments  of  the  rents,  and  the  performance  of 
the  covenants  contained  herein  on  the  part  of  the  said  party  of  the  sec- 
ond part,  and  in  the  manner  hereinafter  stated,  said  party  of  the  first  part 
does  hereby  lease,  demise  and  let  unto  the  said  party  of  the  second  part, 
that  certain  premises  and  building,  and  its  appurtenances  situated  at  No. 
1076  Santee  Street,  in  the  City  of  Los  Angeles,  County  of  Los  Angeles, 
State  of  California,  and  being  Lot  No.  235,  in  Block  "L"  of  the  Avery 
Tract,  to  be  used  a^  a  rooming  house,  for  the  term  of  two  years,  com- 
mencing on  the  First  day  of  September,  1905,  and  ending  on  the  Thirty- 
first  day  of  August,  1905,  at  the  monthlv  rent  or  sum  of  Fifty  (50)  Dollars, 
payable  monthly  in  advance  on  the  I5th  day  of  each  and  every  month  of 
said  term. 

The  party  of  the  second  part  agrees  that  he  has  thoroughly  examined 
said  leased  premises,  and  knows  the  condition  thereof  in  every  particular, 
and  accepts  the  same  in  their  present  condition,  waiving  any  claim  or 
right  on  account  of  such  condition,  and  the  party  of  the  first  part  shall 
not  be  liable  to  the  party  of  the  second  part,  or  to  his  successors  or  as- 
signs, or  to  any  other  person,  for  any  injury  or  damages  that  may  result 
to  persons  or  property  by  reason  of  any  defect  in  the  construction  or  con- 
dition of  said  premises,  whether  such  defect  be  known  or  unknown  to 
either  of  the  parties  hereto,  nor  for  any  loss  or  damages  that  may  be  oc- 
casioned by  storms,  rains  or  leakage  in  the  roofs  or  other  portions  of 
said  premises,  or  by  over-flowing  of  bath  tubs,  explosions  of  gas  heaters, 
or  gas,  or  gasoline  stoves,  or  by  other  injury  to  said  premises,  or  to  per- 


REAL  ESTATE  AT  A  PROFIT  143 

sons  or  property  therein,  or  by  reason  of  any  negligence  of  any  other  ten- 
ant, or  of  any  employee,  of  the  party  of  the  first  part. 

The  carty  of  the  second  part,  shall  not  do,  or  permit  to  be  done,  in 
or  upon  the  said  demised  premises,  anything  which  will  in  any  way  conflict 
with  the  conditions  in  any  insurance  policy,  upon  the  building  or  any  part 
thereof ;  or  in  any  way  increase  the  rate  of  fire  insurance  upon  said  building, 
or  conflict  in  any  way  with  the  laws  or  ordinances,  of  the  City  of  Los  An- 
geles, or  of  the  various  departments  thereof,  and  shall  not  allow  said  prem- 
ises to  be  used  for  any  improper,  immoral  or  unlawful  or  objectionable  pur- 
pose, or  for  the  keeping,  storing,  selling,  or  otherwise  disposing  of  in- 
toxicating liquors. 

The  party  of  the  first  part,  and  his  agents,  and  representatives,  shall 
have  the  right  to  enter  the  demised  ^remises,  to  examine  the  same,  and 
to  make  such  repairs  and  alterations  as  he  may  deem  necessary  for  the 
safety,  care  or  preservation  thereof,  and,  upon  the  expiration  of  this  lease, 
to  show  said  demised  premises  to  c,ny  person  wishing  to  lease  the  same, 
and  shall  have  the  right  to  place  in  the  windows,  or  otherwise  in  said 
premises,  a  notice  to  rent,  for  one  month  prior  to  any  termination  iof 
this  lease. 

AND  IT  is  AGREED,  that  if  any  rent  shall  be  due  and  unpaid,  or  if 
default  shall  be  made  in  any  of  the  covenants  herein  contained,  then  it 
shall  be  lawful  for  the  said  party  of  the  first  part,  to  re-enter  said  prem- 
ises, and  remove  all  persons  therefrom.  And  at  his  option  to  terminate 
this  lease,  but  such  re-entry  shall  not  be  deemed  a  termination  of  the  lia- 
bility of  the  party  of  the  second  part,  unless  notice  of  his  election  to  ter- 
minate the  lease  be  given  by  the  party  of  the  first  part. 

And  the  said  party  of  the  second  part,  does  hereby  promise  and 
agree  to  pay  to  the  said  party  of  the  first  part  the  said  monthly  rent  herein 
reserved,  in  the  manner  herein  specified.  And  not  to  let  or  underlet  the 
whole,  or  any  part  of  said  premises,  or  make  or  suffer  any  alteration  to  be 
made  therein,  without  the  written  consent  of  the  said  party  of  the  first  part ; 
and  not  to  assign  this  lease  without  the  written  consent  of  the  said  party 
of  the  first  part.  And  it  is  further  agreed  that  the  said  party  of  the  first 
part  shall  not  be  called  upon  to  make  any  improvements  or  repairs  what- 
soever, upon  the  said  demised  premises,  or  any  part  thereof,  but  the  said 
party  of  the  second  part  agrees  to  keep  the  same  in  good  order  arid  con- 
dition at  his  own  expense.  And  at  the  expiration  of  said  term  or  any 
sooner  determination  of  this  lease,  the  said  party  of  the  second  part,  will 
quit  and  surrender  the  premises  hereby  demised  in  as  good  order  and 
condition  as  reasonable  use  and  wear  thereof  will  permit,  damages  by 
the  elements  excepted.  And  if  the  party  of  the  second  part  shall  hold 
over  the  said  term,  with  the  consent,  express  or  implied,  of  the  party  of 
the  first  part,  such  holding  over  shall  be  construed  to  be  a  tenancy  from 
month  to  month,  and  said  second  party  will  pay  the  rent  as  above  stated, 
for  such  further  time  as  he  may  hold  the  same.  The  party  of  the  second  part 
agrees  to  pay  all  rents  for  water,  electric  light  and  gas,  which  may  be 


144  HOW  TO  BUY  AND  SEW, 

consumed  in,  or  properly  be  charged  against,   said  premises  during  the 
term  of  this  lease. 

It  is  expressly  understood  and  agreed  by  the  parties  hereto,  that  if 
the  rent  herein  reserved,  or  any  part  thereof,  shall  be  unpaid  on  any  day 
of  payment  whereon  the  same  ought  to  have  been  paid,  and  remains  un- 
paid for  ten  (10)  days  thereafter,  or  if  default  shall  have  been  made  in 
any  of  the  covenants,  or  agreements  herein  contained,  on  the  part  of  the 
said  party  of  the  second  part,  to  be  kept  and  performed,  then  it  shall  and 
may  be  lawful  for  said  party  of  the  first  part,  his  agents,  attorneys 
or  assigns,  to  declare  the  term  of  said  lease  ended,  and  into  said  demised 
premises,  and  every  part  thereof,  to  re-enter,  either  with  or  without  pro- 
cess of  law,  and  to  expel,  remove  or  put  out,  any  person  or  persons  oc- 
cupying the  same,  together  with  the  goods  and  chattels  found  therein,  using 
such  force  as  may  be  found  necessary  in  so  doing,  and  the  said  premises 
to  repossess  and  enjoy  as  in  his  first  and  former  estate. 

The  covenants  and  conditions  herein  contained  shall  inure  to  the 
benefit  of,  and  be  binding  upon,  the  heirs,  successors  and  assigns  of  the 
respective  parties  hereto;  provided,  that  this  lease  shall  not  be  capable  of 
assignment  except  by  the  written  consent  of  said  party  of  the  first  part,  as 
aforesaid. 

IN  WITNESS  WHEREOF,  the  said  parties  of  these  presents  have  here- 
unto set  their  hands  and  seals,  the  day  and  year  first  above  written. 

ALLEN  H.  AVERY.  (Seal) 

THOMAS  B.  LONGSTREET.     (Seal) 

In  consideration  of  the  foregoing  lease  or  agreement,  and  One  Dol- 
lar to  me  paid,  the  receipt  whereof  is  hereby  acknowle'dged,  I  do  hereby 
covenant,  promise  and  agree  to  and  with  the  said  Allen  H.  Avery  that 
the  said  Thomas  B.  Longstreet  shall  well  and  truly  pay  all  rents  and 
perform  and  execute  all  the  covenants  therein  contained  on  his  part  and 
that  on  his  failure  so  to  do  in  any  particular,  I  will  forthwith  pay  unto  said 
Allen  H.  Avery  all  rents  or  damages  that  may  happen  or  accrue  by  reason 
of  such  failure  not  exceeding  the  sum  of  Two  hundred  (200)  Dollars. 
Dated  and  signed  on  this  i6th  day  of  August,  1905. 

C.  G.  REMICK.     (Seal) 

Signed,  Sealed  and  Delivered  in  the  Presence  of 
W.  F.  THAYER, 
SOLON  ABBOTT. 

FORM  NO.  61— FARM  LEASE  "MESA  LANDS"  (CALIFORNIA). 

THIS  AGREEMENT,  made  the  2oth  day  of  August,  in  the  year  of  our 
Lord  one  thousand  nine  hundred  and  four,  by  and  between  S.  J.  Wise, 
of  the  City  and  County  of  San  Francisco,  State  of  California,  party  of  the 
ifirst  part,  and  D.  C.  Vancliff,  of  the  County  of  Santa  Barbara,  State 
aforesaid,  party  of  the  second  part,  Witnesseth:  That  the  said  party  of 
the  first  part,  for  and  in  consideration  of  the  covenants  and  agreements 
hereinafter  mentioned,  and  contained,  on  the  part  of  the  said  party  of  the 
second  part,  his  executors,  administrators  and  assigns,  to  be  kept  and  per- 


REAL  ESTATE  AT  A  PROFIT  145 

formed,  does  by  these  presents,  demise  and  farm-let  unto  the  said  party 
of  the  second  part,  his  executors,  administrators  and  assigns,  and  said 
party  of  the  second  part  does  hire  and  take  from  said  party  of  the  first 
part,  all  that  certain  lot,  piece  or  parcel  of  land  situate,  lying  and  being  in 
the  County  of  Santa  Barbara,  State  of  California,  bounded  and  described 
as  follows,  to-wit : 

(Description.) 

Containing  about  two  hundred  (200)  acres,  to  farm  on  shares 
from  the  date  hereof,  mt.l  the  crops  that  are  on  said  lands  in  the  year 
1906  are  harvested,  but  not  later  than  November  I,  1906,  upon  the  terms, 
covenants  and  conditions  hereinafter  mentioned. 

IN  CONSIDERATION  WHEREOF,  The  said  party  of  the  second  part 
hereby  covenants  and  agrees  to  and  with  said  party  of  the  first  part, 
that  he  will  occupy,  till,  and  in  all  respects  cultivate  the  said  premises, 
and  the  whole  thereof,  during  the  time  aforesaid,  in  due  season,  and  in 
a  good  and  husbandlike  manner,  and  according  to  the  usual  course  of 
husbandry;  that  he  will  not  commit,  or  suffer  any  waste  or  damage 
upon  said  premises,  or  any  part  thereof;  that  he  will  at  his  own  cost  and 
expense,  keep  the  fences  and  buildings  on  the  said  premises  in  good  re- 
pair, reasonable  wear  thereof  and  damage  by  the  elements  excepted;  that 
he  will  find  and  furnish  all  seed  necessary  to  be  sown  on  said  premises, 
and  will  do  or  cause  to  be  done  all  necessary  work  and  labor  in  and  about 
the  cultivation  of  the  said  premises,  and  in  harvesting,  threshing,  sacking 
and  taking  proper  care  of  all  crops  raised  thereon,  as  soon  as  ripe ;  that 
he  will  immediately,  after  each  harvesting  or  threshing,  as  the  case  may 
be,  deliver  to  the  said  party  of  the  first  part,  in  a  warehouse  at  Orcutt, 
California,  an  equal  one-half  of  all  crops  or  other  products  of  the  said 
premises,  the  same  to  be  securely  and  properly  baled  or  sacked  in  new, 
standard  sized  sacks  of  the  first  quality;  and  further  agrees  that  if  the 
grain  grown  on  the  said  premises  be  cut  with  a  "harvester,"  he  will  imme- 
diately gather  the  bags  of  grain  as  harvested,  and  pile  them  in  piles  of 
not  less  than  one  hundred  each. 

It  is  agreed  that  the  system  of  summer-fallowing  shall  be  observed 
in  the  farming  of  said  lands,  and  that  twenty  acres  thereof  shall  be  sum- 
mer-fallowed by  said  party  of  the  second  part  in  each  year  during  the 
term  of  this  lease,  or  any  renewal  or  continuation  thereof. 

The  said  party  of  the  first  part  reserves  the  right  to  sell  the  whole 
or  any  part  of  said  premises,  at  any  time;  but,  in  case  the  purchaser  shall 
not  take  the  same  subject  to  this  lease,  the  said  lease  (as  to  the  lands  so 
sold)  shall  forthwith  terminate;  whereupon  the  said  party  of  the  second 
part  at  the  option  of  lessor  shall  be  permitted  to  harvest  and  remove  the 
crop  then  growing,  or  shall  be  entitled  to  fair  compensation  from  said 
party  of  the  first  part  for  all  labor  employed  and  expense  incurred  in  pre- 
paring for  another  crop,  the  land  so  sold.  Said  party  of  the  second  part 
shall  also  be  entitled  to  fair  compensation  for  'any  summer-fallowing  he 
may  do  and  leave  upon  said  lands,  whether  at  the  expiration  of  the  ex- 
pressed term  of  this  lease  or  upon  any  sooner  determination  thereof.  The 


146  HOW  TO  BUY  AND 

compensation,  or  any  thereof,  in  this  clause  referred  to,  is  to  be  such  as 
shall  be  agreed  upon  by  the  said  parties,  or  in  case  they  do  not  agree,  is 
to  be  such  as  shall  be  fixed  by  three  arbitrators — one  to  be  chosen  by  each 
of  the  parties  hereto,  and  the  third  by  the  two  arbitrators  so  first  chosen. 

AND  IT  is  FURTHER  MUTUALLY  AGREED,  between  the  parties  hereto, 
that  in  case  the  party  of  the  second  part  shall  fail  to  harvest  the  crops 
or  other  products  that  may  grow  on  the  above  described  lands,  as  soon 
as  ripe,  the  said  party  of  the  first  part  may  enter  upon  said  premises,  with- 
out notice  to  the  said  party  of  the  second  part,  and  take  possession  of  all 
crops  or  other  products  that  may  be  thereon,  and  harvest  the  same  at  the 
expense  and  cost  of  the  party  of  the  second  part,  and  may  sell  by  public 
or  private  sale,  and  with  or  without  notice  or  previous  demand  of  pay- 
ment, so  much  of  the  share  thereof  belonging  to  said  party  of  the  second 
part  as  shall  appear  to  be  necessary  therefor,  and  apply  the  proceeds  of 
sale  in  payment  and  reimbursement  of  all  costs  and  expenses  incurred  in 
such  harvesting,  and  in  providing  sacks  and  sacking,  baling,  hauling,  and 
storing  the  said  crops  or  other  products,  or  any  part  thereor. 

AND  IT  is  FURTHER  AGREED,  that  said  party  of  the  first  part  shall,  at 
all  times,  be  the  absolute  owner  as  of  original  right  of  the  proportion  of 
said  crops  and  other  products  which  he  shall  be  entitled  to  receive  and  re- 
tain under  this  agreement,  and  the  remainder  shall  belong  to  and  be  the 
property  of  the  party  of  the  second  part. 

The  party  of  the  first  part  may,  at  any  time,  at  his  option,  after  said 
harvesting  and  threshing,  enter  upon  the  said  premises,  and,  without  pro- 
cess of  law,  select  and  remove  the  proportion  of  crops  and  other  products 
to  which  he  is  so  entitled  under  this  agreement. 

Said  party  of  the  second  part  agrees  that  he  will  not  feed  stock  from 
the  growing  crop  on  the  said  lands ;  and  also  agrees  that  none  of  the  said 
lands  shall  be  volunteered  without  the  written  consent  of  the  party  of  the 
first  part;  and  in  case  volunteer  be  allowed,  said  party  of  the  first  part 
shall  receive,  have  and  own  one-half  of  said  crop,  properly  sacked,  or  baled, 
as  the  case  may  be,  and  delivered  as  aforesaid;  and  also  agrees  that  no 
dry  plowing  shall  be  done  without  the  written  consent  of  the  party  of  the 
first  part. 

It  is  agreed  that  no  hay  shall  be  cut  upon  said  premises  (except 
around  the  margin  of  the  crop,  where  necessary  to  avoid  waste  in  harvest- 
ing,) without  the  written  consent  of  the  said  party  of  the  first  part;  and 
that  of  all  hay  which  shall  be  cut  upon  said  premises,  the  party  of  the  first 
part  shall  own  and  receive  the  one-half  part  baled  and  delivered  by  said 
party  of  the  second  part  as  aforesaid. 

IT  is  FURTHER  UNDERSTOOD  AND  AGREED  between  the  said  parties,  that 
the  party  of  the  first  part  reserves  the  privilege  to  give  right  of  way 
through  the  aforesaid  lands,  or  any  of  them,  for  railroads,  ditches,  etc.,  at 
any  time  during  the  term  of  this  lease. 

IT  is  ALSO  AGREED  that  if  said  party  of  the  second  part  shall  fail  or 
neglect  to  fulfill  or  perform  any  of  the  covenants  or  agreements  herein  con- 
tained, or  shall  violate  any  thereof,  it  shall  be  lawful  for  the  said  party  of 


REAL  ESTATE  AT  A  PROFIT  147 

the  first  part  to  re-enter  the  said  premises  and  remove  all  persons  there- 
from, and  forthwith  terminate  this  lease. 

AND  ALSO  that  in  case  any  suit  or  action  be  commenced  by  said  party 
of  the  first  part  for  recovery  of  possession  of  said  premises  or  any  part 
thereof,  or  for  the  enforcement  or  protection  of  his  rights  to  his  proportion 
of  the  said  crops  or  other  products,  or  any  part  thereof,  or  on  account  of 
the  non-fulfillment  of  the  conditions  or  agreements  or  any  of  them  con- 
tained in  this  lease,  the  party  of  the  first  part  shall  be  entitled,  if  he  re- 
cover judgment,  to  have  included  therein  and  to  recover  the  sum  of  $100.00 
for  attorney's  fees,  together  with  all  costs  of  such  suit  or  action. 

IT  is  FURTHER  AGREED,  that  the  party  of  the  first  part  shall  have  and 
own  all  stubble  on  the  aforesaid  lands,  and  have  the  right  to  take  possession 
thereof  as  soon  as  the  crop  is  harvested. 

The  party  of  the  second  part  shall  make  a  reasonable  effort  to  extern^ 
inate  the  squirrels  on  the  above  described  lands,  during  the  existence  of  this 
agreement,  at  his  own  expense. 

This  contract  shall  not  be  assignable  or  transferable,  in  whole  or  in 
part,  without  the  written  consent  of  the  said  party  of  the  first  part. 

Said  party  of  the  second  part  agrees  that,  at  the  expiration  of  said 
term,  he  will  surrender  and  yield  up  peaceable  possession  of  said  premises 
to  said  D'arty  of  the  first  part. 

IN  WITNESS  WHEREOF,  the  said  parties  have  hereunto  set  their  hands 
and  .eals  the  day  and  year  first  above  written. 

[In  duplicate.] 

S.  J.  WISE.  (Seal) 

D.   C.  VANCLIFF,          (Seal) 

Signed,  sealed  and  delivered  in  the  presence  of : 

MILTON  YOUNG,  Witness. 

L.  A.  DANIELS,  Witness. 

FORM  NO.  62— FARM  LEASE  (COLORADO). 

THIS  ARTICLE  OF  AGREEMENT,  Made  and  entered  into  by  and  between 

party  of  the  first  part,  lessor,  and 

party  of  the  second  part,  lessee,  witnesseth,  that  the  said  party  of  the  first 
part  has  this  day  leased  unto  said  party  of  the  second  part  the  following 

described  premises  situated  in  the  County  of  .and  state  of 

to- wit : together  with  all  buildings  and  improve- 
ments on  the  same  (except  as  hereinafter  mentioned)  for  the  term  of 

.year. .  .commencing  on  the day  of 

190. .,  and  ending  the day  of 190. .,  at  the 

rent  of subject  to  conditions  in  fourteenth  clause  hereof. 

the  said rent  to  be  paid  or  delivered,  as  the  case  may  be,  as  fol- 
lows : And  the  said  party  of  >the  first  part  makes  the 

following  reservation,  to-wit :  The  said  party  of 

the  second  part,  lessee,  agrees  as  follows : 

ist.  To  thoroughly  plow,  cultivate  and  farm  in  farm-like  manner,  all 
lands  upon  said  premises  not  in  tame  or  wild  grass,  or  in  timber. 


148  HOW  TO  BUY  AND  SELL, 

2nd.  That will  use  said  premises  as  a  and  for 

no  other  purpose  whatsoever,  that  especially  will  not  let  said  premises  or 
permit  the  same  to  be  used  for  any  unlawful  business  or  purpose  what- 
soever. 

3rd.  That will  not  sell,  assign,  underlet,  or  relinquish  said 

premises  without  the  written  consent  of  the  said  party  of  the  first  part 

(lessor),  under  the  penalty  of  a  forfeiture  of  all rights  under  or 

by  virtue  of  this  Lease,  at  the  election  of  said  party  of  the  first  part. 

4th.  That will  guard  said  property,  buildingSj  gates,  fences, 

vines,  shrubbery,  and  orchard  from  all  damages,  that will  keep  the 

buildings,  glass,  gates  and  fences  in  as  good  repair  as  the  same  now  are,  or 
may  be  at  any  time  placed  in  by  the  said  party  of  the  first  part  (lessor)  ; 
that will  do  no  act  whereby  an  insurance  on  buildings  may  be  in- 
validated; that will  not  remove  nor  allow  any  other  person  to  re- 
move from  said  premises  any  of  the  fences,  buildings,  trees,  shruboery,  or 
any  of  the  improvements  of  any  kind. 

5th.  That will  haul  out  all  manure  on  said  premises,  in  the 

summer  and  fall,  and  place  it  where  the  party  of  the  first  part  desh-s.  No 
furrows  to  be  run  so  as  to  cause  ditches  to  vash  said  premises,  unless  first 
having  written  consent  of  said  party  of  the  first  part.  That  he  will  clean 
out  and  maintain  in  good  repair,  during  the  operation  of  this  Lease,  all 
ditches  belonging  or  appertaining  to  the  above  described  land. 

6th.  That will  well  and  seasonably  put  in  and  tend  said 

crops ;  that will  have  all  small  grain  threshed  by 

and  corn  husked  and  cribbed  by of  each  year;  and  if  not  threshed 

or  cribbed  as  stated,  first  party  may  proceed  to  do  so  after  ten  (10)  days' 
notice  to  second  party,  and  take  enough  of  second  party's  grain  to  pay  ex- 
pense of  such  gathering  or  harvesting  or  threshing;  that  the  tame  or  wild 
grass  is  to  be  well  harvested  and  taken  care  of ;  that  no  young  or  growing 
timber  is  to  be  cut  or  used  which  is  now  growing  on  said  premises;  that 
no  rails,  boards  or  posts  be  used  or  appropriated  as  fuel  or  other  purposes. 

7th.  That accepts  the  fences  upon  said  leased  premises  as 

they  now  are 

8thi  That  at  the  expiration  of  this  Lease,  or  upon  a  breach  by  the 
said  party  of  the,second  part  of  any  of  the  covenants  herein  contained 

will,  without  further  notice  of  any  kind,  quit  and  surrender 

the  possession  and  occupancy  of  said  premises  in  as  good  condition  as 
careful  use  and  natural  wear  and  decay  thereof  will  permit. 

9th.  That  all  goods  and  chattels,  or  any  other  property  used  or  kept 
on  said  premises,  shall  be  held  for  the  rent  or  damages  under  this  Lease, 
whether  exempt  from  execution  or  not,  meaning  or  intending  hereby  to 
give  the  party  of  the  first  part  a  valid  and  first  lien  upon  any  and  all  goods 
and  chattels,  crops  and  other  property  belonging  to  said  party  of  the  sec- 
ond part. 

loth.  It  is  further  agreed  that  second  party  is  to  work  out  the  road 
tax  for  190. .,  and  send  receipt  for  same  to  first  party. 

i  ith.    It  is  further  agreed 


ESTATE  AT  A  PROFIT  149 

I2th.  That  all  payments  from  party  of  the  second  part  shall  become 
due  and  paj^able  upon  his  forfeiture  of  said  Lease,  or  his  abandoning  said 
premises,  and  if  it  becomes  necessary  for  the  first  party  to  bring  an  action 
at  law  to  recover  possession,  damage  or  rent,  party  of  the  second  part 
agrees  to  pay  a  reasonable  attorney's  fee  therefor,  and  all  costs  attending 
the  same. 

i3th.  It  is  further  agreed  that  in  case  the  land  described  herein  is  sold 
or  rented  to  another  tenant  for  190. .,  said  tenant  or  buyer  shall  have  the 
right  to  go  on  said  land,  make  repairs,  fall  plow,  or  sow  wheat  in  the  fall 
of  190. . 

I4th.     It  is  further  understood  and  agreed  that  in  case  first  party  sells 

the  propertv  described  herein  before  the day 190. ., 

it  or  its  assigns  may  declare  this  Lease  void  and  of  no  effect,  by  giving  sec- 
ond party  notice  of  said   sale  before  the day  of 

190..,  and  payinp-  second  party dollar.,  per  acre  for  all  plow- 
ing done  on  said  land  in  the  fall  of 

IN  WITNESS  WHEREOF,  The  said   parties    have    hereunto    subscribed 

their  names,  and  signed  a  duplicate,  this day  of 190. . 

(Seal) 

(Seal) 

(Seal) 

IN  PRESENCE  OF 


FORM  NO.  63— OIL  LEASE  (COLORADO). 

THIS  AGREEMENT,  made  and  entered  into  this  9th  day  of  April,  A.  D. 
1005,  b'r  and  between  Richard  Reese  of  Kit  Carson  County,  and  State  of 
Colorado,  party  of  the  first  part,  and  James  Morton  of  the  County  of  Fre- 
mont, and  State  of  Colorado,  party  of  the  second  part, 

Witnesseth :  That  the  said  party  of  the  first  part,  for  and  in  consid- 
eration of  the  royalties  hereinafter  agreed  to  be  paid  and  of  the  covenants 
and  agreements  hereinafter  expressed  to  be  kept  and  performed  by  the 
said  party  of  the  second  part,  has  leased,  let  and  demised  and  by  these 
presents  does  lease,  let  and  demise  unto  the  said  party  of  the  second  part, 
the  following  described  premises,  to-wit :  S.  E.  J4  °f  N.  E.  J4  of  Section 
23,  Township  16  South,  Range  10  East  of  principal  meridian,  in  Fremont 
County,  State  of  Colorado,  containing  160  acres,  more  or  less : 

To  have  and  to  hold,  unto  the  said  party  of  the  second  part  for  the 
term  of  fifty  years  from  the  date  hereof;  the  said  party  of  the  first  part 
hereby  giving  and  granting  to  the  party  of  the  second  part  the  following 
rights,  powers  and  privileges,  to-wit :  to  prospect,  bore,  drill,  mine  and  de- 
velop the  said  premises  for  oil  and  gas;  to  erect,  construct  and  maintain 
machinery,  tanks,  pipe  lines,  refineries,  tramways,  cable  lines,  railways, 
railway  sidings,  dwelling:  houses  and  any  and  all  structures  which  may  be 
necessary  or  proper  to  be  erected,  constructed  or  maintained  for  the  pur- 
pose of  prospecting,  boring,  drilling  and  developing  the  said  premises  as 


150  HOW  TO  BUY  AND 

aforesaid,  and  of  storing,  using  and  disposing  of  oil  and  gas  found  or  dis- 
covered upon  the  said  premises  or  upon  premises  in  the  vicinity  thereof. 

The  said  party  of  the  second  part  covenants  and  agrees  as  follows,  to- 
wit : 

First. — To  pay  and  deliver  as  royalty  to  the  said  party  of  the  first 
part,  ten  per  cent  of  the  net  proceeds  derived  from  all  oil  or  gas  obtained  by 
virtue  of  this  agreement,  the  product  so  obtained  and  disposed  of  for  each 
month  to  be  paid  for  on  the  first  day  of  the  second  month  following. 

Second. — To  commence  in  the  County  of  Fremont,  State  of  Colorado, 
within  one  year  of  the  date  hereof,  to  drill  a  well  for  oil  and  to  continue 
the  work  thereon  with  due  diligence  until  the  said  well  shall  have  reached 
the  depth  of  1,000  feet,  or  oil  or  gas  has  been  discovered,  and  in  the  event 
of  a  discovery  of  oil  or  gas  in  paying  quantities  in  said  well,  to  commence, 
within  five  years  from  the  date  hereof,  to  drill  a  well  for  oil  on  the  above 
described  premises,  it  being  agreed  and  understood  that  a  failure  to  com- 
mence to  drill  either  of  the  above  mentioned  wells  shall  in  no  manner  ren- 
der the  said  second  party  liable  for  any  damages  to  the  first  party,  his  heirs 
or  assigns. 

It  is  also  agreed  that  the  said  party  of  the  first  part  shall  fully  use 
and  enjoy  said  premises  for  horticultural,  farming  and  grazing  purposes 
until  said  second  party  is  ready  to  commence  operations  thereon,  and  after 
operations  have  been  commenced  on  said  premises  by  said  second  party, 
said  first  party  shall  fully  use  and  enjoy  said  premises  for  said  purposes, 
except  such  parts  as  may  be  necessary  for  the  operations  of  said  second 
party,  and  for  the  construction  of  derricks,  pipe  lines,  tramways,  railroad 
tracks  and  other  things  necessary  for  the  purposes  herein  mentioned. 

It  is  further  agreed  that  there  shall  be  no  wells  drilled  within  one 
hundred  feet  of  the  buildings  now  on  the  premises,  without  the  consent  of 
the  first  party. 

It  is  further  agreed  that  if  one  or  more  dry  wells  are  drilled  on  said 
land,  which  fail  to  produce  oil  or  gas  in  paying  quantities,  then  the  party 
of  the  second  part  shall  have  the  right  to  abandon  this  lease  and  said  prop- 
erty shall  revert  to  said  party  of  the  first  part,  without  liability  for  further 
development. 

It  is  hereby  further  covenanted  and  agreed  that  any  and  all  fixtures, build- 
ings, machinery  and  improvements  of  every  description  erected  upon  the 
said  land  and  premises  under  and  by  virtue  of  this  lease  may  be  removed 
within  ninety  days  from  and  after  the  termination  of  this  agreement ;  that 
the  said  party  of  the  second  part  shall  have  the  right  to  take  and  use  water 
from  any  ditch  or  ditches,  stream  or  streams,  spring  or  springs  in  and 
upon  the  said  land  and  premises,  so  far  as  may  be  necessary  for  the  opera- 
tion of  whatever  machinery  may  be  necessary  or  proper  to  be  used  on 
account  of  this  agreement;  that  the  said  land  and  premises,  and  any  part 
thereof,  may  be  sublet,  and  any  or  all  rights  existing  under  and  by  virtue 
of  this  agreement  may  be  assigned  or  transferred;  that  the  title  to  any 
and  all  oil  or  gas  found  or  discovered  in  or  upon  the  said  land  and  prem- 
ises shall  be  in  the  said  party  of  the  second  part,  subject,  however,  to  the 


ESTATE  AT  A  PROFIT  151 

payment  of  the  royalty  herein  reserved  to  be  paid ;  that  if  the  said  party 
of  the  second  part  shall  fail  in  any  respect  to  keep  and  fulfill  any  and  all 
agreements  herein  expressed  or  implied,  then,  and  in  that  case  it  shall  be 
lawful  for  the  said  party  of  the  first  part,  his  agent  or  attorney,  to  de- 
clare this  lease  void  and  of  no  effect  thereafter,  and  without  process  of 
law,  to  enter  upon  and  take  possession  of  said  premises ;  and  that  in  such 
case,  or  at  the  expiration  of  this  lease  by  limitation,  the  said  party  of  th' 
second  part  shall  surrender,  yield  and  deliver  to  said  party  of  the  first 
part  quiet  and  peaceable  possession  of  said  premises  in  good  condition. 

In  consideration  of  1he  premises,  it  is  also  further  agreed  by  and  be- 
tween the  parties  hereto  that  the  said  party  of  the  second  part  shall  have 
the  right  and  option  to  purchase  all  of  the  land  and  premises  described 
herein  upon  the  payment  of  Five  Thousand  (5,000)  dollars  as  follows, 
to-wit:  $2,000,  on  or  before  the  Qth  day  of  April,  1906,  $2,000,  on  or  be- 
fore the  Qth  day  of  September,  1906,  $1,000  on  or  before  the  9th  day  of 
April,  1907,  a  good  and  sufficient  deed,  conveying  all  the  right,  title  and 
interest  of  the  said  party  of  the  first  part,  to  be  delivered  to  the  said  party 
of  the  second  part,  upon  the  payment  of  the  said  consideration. 

Each  and  every  grant,  promise  and  covenant  herein  made  by  either 
party  hereto  is  and  shall  be  a  grant,  promise  and  covenant  of  the  heirs,  ad- 
ministrators, executors,  successors  and  assigns  of  such  party,  and  any 
right,  privilege  or  property  herein  granted  to  either  of  the  parties  hereto 
shall  be  a  right,  privilege  and  property  of  the  heirs,  executors,  adminis- 
trators, successors  and  assigns  of  such  party. 

IN  WITNESS  WHEREOF,  The  said  parties  hereto  have  hereunto  set 
their  hands  and  seals  the  day  and  year  first  above  written.  (Executed  in 
Duplicate.) 

RICHARD  REESE.   (Seal) 
JAMES  MORTON.    (Seal) 
(  Acknowledgments. ) 

FORM  NO.  64- -OIL  LEASE  (CALIFORNIA). 

THIS  LEASE  AND  AGREEMENT,  made  and  entered  into,  in  duplicate, 
this  loth  day  of  May,  in  the  year  A.  D.  1905,  by  and  between  Alfred  Ben- 
ton  and  Jane  Benton,  his  wife,  of  the  County  of  Santa  Barbara,  State  of  Cali- 
fornia, the  parties  of  the  first  part,  and  Blue  Bird  Oil  Company,  a  corporation, 
organized  and  existing  under  the  laws  of  the  State  of  California,  and  hav- 
ing its  principal  place  of  business  at  Los  Angeles,  Los  Angeles  County, 
California,  the  party  of  the  second  nart : 

WITNESSETH,  That  for  and  in  consideration  of  the  rents  and  royal- 
ties to  be  paid  by  party  of  the  second  part  to  parties  of  the  first  part 
hereinafter  specified,  and  of  the  covenants,  agreements  and  stipulations  by 
said  party  of  the  second  part  hereinafter  undertaken  to  be  done  and  per- 
formed, the  said  parties  of  the  first  part  do  hereby  grant,  lease,  demise 
and  let  unto  the  party  of  the  second  part,  its  successors  and  assigns,  for 
the  term  and  time  and  for  the  purposes,  and  under  and  in  accordance  with 
the  stipulations,  agreements  and  conditions  herein  set  forth,  the  following 


152  HOW    TO   BUY   AND 

described  lands,  situate  in  the  County  of  Santa  Barbara,  State  of  Califor- 
nia, bounded  and  described  as  follows,  to-wit : 

(Description.) 

Together  with  the  exclusive  right  to  operate,  mine,  tunnel  and  drill 
for,  and  to  otherwise  develop,  collect  and  obtain  crude  petroleum  oil,  as- 
phaltum,  maltha,  tar,  gas,  and  any  and  all  other  hydro-carbon  substances 
in,  upon  and  under  said  lands;  together  with  the  right  to  take,  remove, 
hold,  own,  market  and  otherwise  to  use,  enjoy  and  dispose  of  all  of  said 
petroleum  oil  and  any  and  all  of  said  other  substances  which  may  be  pro- 
duced and  saved  by  party  of  the  second  part,  out  of,  from  and  away  from 
said  lands,  subject  to  the  payment  of  the  rents  and  royalties  herein  pro- 
vided. ; 

TOGETHER  with  the  right  and  privilege  at  any  and  all  times,  during 
the  continuance  of  this  contract,  to  enter  and  travel  in,  upon  and  over 
any  and  all  portions  of  said  demised  premises,  and  thereon  to  build,  erect, 
hold,  operate,  maintain  and  enjoy  any  and  all  necessary  or  convenient 
roads,  derricks,  rigs,  boilers,  engines,  machinery,  pumping  stations  and 
plants,  jacks,  boarding  houses,  bunk  houses,  stables,  pipe-lines,  tanks, 
telephone  lines,  and  any  and  all  other  means,  appliances,  machinery  and 
structures,  proper  or  convenient  for  use  in  connection  with  the  develop- 
ment, collection,  storage  and  transportation  of  any  and  all  of  said  hydro- 
carbon substances. 

TOGETHER  also  with  the  right,  at  any  and  all  times,  during  the  con- 
tinuance of  this  contract,  to  take,  develop  and  use  any  and  all  water  on 
said  demised  premises  that  may  be  necessary  or  convenient  for  operating 
machinery  and  for  domestic  and  stock  purposes  and  uses  in  connection 
with  the  operations  of  party  of  the  second  part  under  this  contract,  and 
fcr  use  in  sinking  and  drilling  wells  and  driving  tunnels  and  making  ex- 
cavations on  and  in  said  lands,  and  otherwise  in  connection  with  operat- 
ing for  and  developing,  removing  and  marketing  said  oil  and  said  other 
substances  on,  in  and  from  said  demised  premises. 

To  HAVE  AND  TO  HOLD  the  premises  hereinabove  described,  and  all 
and  singular  said  rights,  privileges,  interests  and  easements  herein  granted, 
unto  the  said  party  of  the  second  part,  its  successors  and  assigns,  for  and 
during  the  time  and  periods  and  subject  to  all  the  terms,  conditions,  stip- 
ulations and  agreements  herein  specially  set  forth. 

And  it  is  expressly  understood  and  agreed  that,  subject  to  the  rights, 
privileges  and  easements  herein  granted  exclusively  to  said  party  of  the 
second  nart,  the  said  parties  of  the  first  part  are  to  retain  the  use  and 
possession  of  the  lands  and  premises  hereby  demised,  during  said  term, 
for  all  purposes  that  they  may  desire  which  are  not  inconsistent  with  the 
exclusive  rights,  privileges  and  easements  hereby  granted  to  the  said  party 
f>f  the  second  part. 

ist.  The  party  of  the  second  part  agrees  that  it  will  within  sixty 
days  from  the  date  hereof  commence  operations  on  said  lands,  and  that  it 
shall  and  will  sink  or  drill  wells  on  said  premises  at  the  rate  of  four  (4) 
wells  per  year  for  the  period  of  ten  (10)  years  from  and  after  the  date 


REAIv  ESTATE  AT  A  PROFIT  153 

hereof;  provided,  that  the  party  of  the  second  part  shall  be  able  to  sink  as 
many  as  four  wells  per  vear  on  said  lands  by  the  diligent  and  continuous 
operation  of  two  strings  of  drilling  tools  thereon ;  it  being  understood 
that  if  four  wells  cannot  be  sunk  on  said  lands  in  any  year  by  the  dili- 
gent and  continuous  operation  of  two  strings  of  drilling  tools,  the  obliga- 
tion of  the  party  of  the  second  part  in  this  behalf  shall  nevertheless  be 
considered  to  have  been,  and  shall  be,  fully  performed  for  such  year  if 
two  strings  of  drilling  tools  shall  have  been  diligently  and  continuously 
operated  on  said  premises  during  such  year. 

2nd.  It  is  further  understood  and  agreed,  however,  that  the  fore- 
going agreement  fixes  only  the  minimum  number  of  wells  to  be  sunk  or  the 
minimum  number  of  strings  of  tools  to  be  operated,  and  that  party  of  the 
second  part  may  sink  in  any  year  in  said  term  of  ten  years,  and  in  the 
aggregate  during  said  term,  as  many  wells  hereunder  as  it  sees  fit,  there 
beinp-  no  maximum  limit  fixed  to  the  number  of  wells  to  be  sunk  here- 
under during  said  term  of  ten  years ;  and  that  in  case  party  of  the  second 
part  in  any  of  said  years  shall  sink  a  well  or  wells  on  said  lands  in  ex- 
cess of  said  number  of  four  wells  required  to  be  sunk  in  each  year,  then 
the  well  or  wells  so  sunk  in  excess  of  said  required  yearly  number,  shall 
be  applied  on  the  wells  required  to  be  sunk  hereunder  thereafter,  in  such 
manner  and  for  such  year  or  years  as  the  said  party  of  the  second  part 
shall  elect. 

3rd.  It  is  further  understood  and  agreed  that  if  the  party  of  the  sec- 
ond Dart  shall  fail  for  any  one  year  to  sink  the  said  required  number  of 
wells  for  that  year,  or  to  operate  continuously  and  diligently  during  the 
same  with  two  strings  of  tools  as  herein  expressed  and  stated,  the  party  of 
the  second  part  shall  forfeit  all  rights  under  this  grant  to  drill  or  sink 
upon  said  lands  other  wells  than  those  already  completed  as  herein  de- 
fined, or  on  which  work  is  being  done  in  good  faith  at  the  time  of  such 
forfeiture,  and  shall  also  forfeit  the  right  to  begin  any  new  tunnels,  exca- 
vations or  other  works  thereon.  It  being  particularly  understood  and 
agreed,  however,  that  said  party  of  the  second  part  shall  not  be  bound  to 
carry  on  said  work  of  drilling  wells  on  Sundays,  or  on  legal  holidays,  or 
at  night  when  by  reason  of  excessive  gas,  or  otherwise,  it  is  unsafe  to 
drill  at  night,  or  when  prevented  by  the  weather,  strikes,  unavoidable  short- 
age of  water,  accidents  or  other  unavoidable  causes,  and  that  the  failure  of 
party  of  the  second  part,  at  any  time,  to  diligently  and  continuously  operate 
two  strings  of  tools  shall  be  deemed  to  be  excused,  and  shall  be  excused,  if 
such  failure  occurs  by  reason  of  any  of  the  causes  or  reasons  above  named, 
and  by  such  failure  to  operate  party  of  the  second  part  shall  neither  for- 
feit nor  lose  any  of  its  rights  hereunder. 

4th.  It  is  further  understood  and  agreed  that  the  right  and  priv- 
ilege hereby  granted  to  drill  or  construct  new  wells,  tunnels,  or  excava- 
tions for  the  development  of  said  hydro-carbon  substances  upon  said  lands 
shall  in  any  event  cease  and  determine  at  and  from  the  expiration  of  said 
term  of  ten  (10)  years  from  the  date  of  this  instrument.  It  being  under- 
stood and  agreed,  however,  that  the  party  of  the  second  part  shall  have  the 
right  to  complete  such  wells  or  other  works  as  may  have  been  commenced 


154  HOW    TO   BUY    AND 

at  the  time  of  the  expiration  of  said  term,  and  work  whereon  is  in  active 
progress. 

5th.  Whenever  the  party  of  the  second  part  shall  have  found  oil  in 
any  well  in  quantities  sufficient  to  pay  to  pump,  such  well  shall  be  deemed 
to  be  and  shall  be,  and  shall  be  counted  as  a  completed  well,  for  all  and 
singular  the  purposes  of  this  agreement;  and  whenever  party  of  the  sec- 
ond part  shall  have  sunk  any  well  to  a  depth  of  five  hundred  feet,  although 
oil  be  not  discovered  in  paying  quantities,  the  same  shall  be  deemed  to  be 
and  shall  be,  and  shall  be  counted  as  a  completed  well  for  all  and  singular 
the  purposes  of  this  agreement. 

6th.  That  party  of  the  first  part  shall  receive  and  have,  and  party 
of  the  second  part  shall  pay  and  deliver  to  party  of  the  first  part,  as  and  for 
rent  and  royaltv,  a  one-eighth  (1-8)  part  of  the  net  production  of  all  oil, 
or  other  hydro-carbon  substances,  taken  or  obtained  by  said  party  of  the 
second  part  in  commercial  quantities  from  any  tunnels,  wells,  or  excava- 
tions sunk  or  made  on  said  lands  hereunder,  and  said  rent  and  royalty 
shall  be  so  paid  by  said  party  of  the  second  part  to  said  party  of  the  first 
part  as  long  as  said  party  of  the  second  part  shall  operate  or  pump  any 
wells  upon  said  premises  or  take  any  of  said  substances  therefrom.  By 
the  term  "net  production"  is  meant  the  entire  amount  of  oil,  or  othef 
hydro-carbon  substances,  produced  and  saved  from  any  tunnel  excavations 
or  wells  on  said  premises,  after  deduction  shall  have  been  made  for  and  of 
any  and  all  fuel  used  bv  said  party  of  the  second  part  in  connection  with 
its  operations  on  said  premises.  Said  rents  and  royalties  shall  be  delivered 
to  fiarty  of  the  first  part  in  kind,  and,  if  they  be  licjuids,  at  and  from  the 
storage  tanks  of  party  of  the  second  part,  on  said  premises ;  deliveries  of 
all  rents  and  royalties  produced  during  each  calendar  month  shall  be  made 
not  later  than  the  I5th  day  of  the  month  next  succeeding.  The  parties 
hereto  shall,  on  the  I5th  day  of  each  month,  make  an  accounting  and  set- 
tlement of  and  for  the  royalty  oil  or  other  hydro-carbon  substances  pro" 
duced  and  saved  under  this  contract  from  said  premises  during  the  pre- 
ceding calendar  month.  In  the  event  that  party  of  the  first  part  shall  fail 
or  neglect  to  provide  suitable  means  of  transportation  and  storage  for  the 
receipt  and  transportation  of  its  royalties,  at  the  times  and  places  when 
and  where  the  same  are  to  be  delivered,  as  aforesaid,  then  the  party  of 
the  second  part  may  store,  transport  and  market  the  same;  and  in  such 
case  party  of  the  second  part  shall  be  entitled  to  a  credit  for,  and  shall  re- 
ceive, the  usual  and  reasonable  rates  for  3uch  storage  and  transportation, 
and  for  its  service  in  marketing  such  royalties,  and  shall  account  for  and 
pay  to  party  of  the  first  part  the  excess  after  deduction  of  such  charges. 

7th.  Party  of  the  second  part  shall  keep  a  full,  correct  and  accurate 
account  of  all  oil,  or  said  other  substances  produced  and  saved  by  it  on 
and  from  said  premises  under  this  agreement,  which  said  account  may  at 
all  times,  during  office  hours,  be  inspected  by  the  parties  of  the  first 
part,  or  their  agents,  who  shall  also  have  free  access  to  said  premises 
at  all  reasonable  times,  and  to  the  wells  sunk  thereon,  and  to  the  storage 
tanks,  for  the  purpose  of  measuring  and  gauging  the  oil  and  other  sub- 
stances produced  and  saved  from  said  premises. 


REAL  ESTATE  AT  A  PROFIT  155 

8th.  That  party  of  the  second  part  shall  and  will  diligently  and  in  a 
business-like  manner  pump  or  otherwise  operate  and  care  for  the  wells 
and  other  works  sunk  or  made  on  the  said  lands  at  all  times,  so  long  as  it 
shall  remain  in  possession  and  control  of  the  same ;  it  being  understood 
and  agreed,  however,  that  said  party  of  the  second  part  shall  not  be,  and  it 
is  not,  bound  to  operate  its  v/orks  at  night,  on  Sundays,  or  on  legal  holi- 
days, nor  when  prevented  by  the  weather,  strikes,  unavoidable  shortage  of 
water,  accidents  or  other  unavoidable  causes,  nor  during  such  times  as  for 
any  reason  it  is  unable  to  secure  tank  cars  for  the  transportation  of  said 
oil. 

9th.  It  is  also  particularly  understood  and  agreed  that  if,  at  any 
time,  the  price  which  can  be  obtained  at  the  wells  for  oil  produced  on  and 
from  said  premises  shall  drop  to,  or  be  forty  cents,  or  less,  per  barrel  of 
42  gallons,  then  during  such  period  or  periods  in  which  the  market  price 
of  said  oil  shall  be  forty  cents,  or  less,  per  barrel  at  the  wells,  party  of  the 
second  nart  shall  not  be  obligated  to  pump,  drill  or  otherwise  work  or  oper- 
ate on  said  premises  for  oil,  and  it  shall  neither  forfeit  nor  lose  any  of  its 
rights  hereunder  for  failure  to  operate  durine  said  period  or  periods  of  low 
price  of  oil. 

loth.  At  the  expiration  of  the  time  hereinabove  designated,  within 
which  party  of  the  second  part  is  given  the  right  to  sink  new  wells,  drive 
new  tunnels  or  make  new  excavations  hereunder,  to-wit,  ten  years  from 
and  after  May  10,  1905,  or  after  the  sooner  termination  of  such  rights, 
party  of  the  second  part  shall  cease  all  further  prosecution  of  such  work 
on  said  premises,  excepting  on  and  in  any  wells  which  have  been  completed, 
as  hereinbefore  defined,  or  on  or  in  any  wells  or  other  works  which  at  the 
time  are  in  process  of  completion.  It  being  particularly  understood  and 
agreed  that  partv  of  the  second  part  shall  have  the  right  to  complete  any 
well  or  wells,  tunnels  or  excavations  which  may  have  been  started  before 
such  expiration  of  the  time  within  which  it  has  the  right  to  do  such  work 
hereunder  and  on  which  work  is  in  active  progress,  which  wells,  tunnels 
and  excavations  shall  be  deemed  to  be,  shall  be,  and  shall  be  treated  in 
all  respects  as  though  sunk,  drilled  or  prosecuted  to  completion  prior  to 
the  expiration  of  such  time  within  which  the  party  of  the  second  part  has 
tne  rierht  to  drill  or  sink  additional  wells  or  commence  said  other  works 
hereunder.  It  is  further  understood  and  agreed  that  the  oarty  of  the  sec- 
ond part  shall,  at  all  times,  either  before  or  after  the  termination  of  its 
right  to  commence  additional  wells,  tunnels  and  excavations  hereunder, 
have  the  right  to  repair,  clean,  deepen,  extend,  or  otherwise  operate  on 
and  in  any  and  all  wells,  tunnels  or  excavations  which  may  have  been  com- 
pleted, as  defined  hereunder,  or  which  are  in  process  of  completion  at  the 
termination  of  such  right. 

nth.  The  party  of  the  second  part  hereby  covenants  and  agrees 
that  in  case  of  abandonment  of  any  well,  it  shall  and  will  use  its  best  en- 
deavors to  shut  off  from  the  oil-bearing  rock  any  and  all  water  it  may  have 
encountered  in  drilling. 

I2th.    It  is  further  particularly  understood  and  agreed  that  after  the 


156  HOW    TO    BUY    AND 

termination  of  the  right  of  the  party  of  the  second  part  to  sink  addi- 
tional wells  or  commence  other  new  work  on  said  premises  hereunder, 
whether  said  right  shall  terminate  prior  to  or  upon  the  expiration  of  said 
term  of  ten  years,  said  party  of  the  second  part  shall  have  the  right  to 
retain,  deepen,  extend,  clean  out,  repair,  pump  and  otherwise  work  and 
operate  all  and  singular  the  wells,  tunnels  and  excavations  completed,  as 
herein  defined,  or  commenced  to  be  sunk  or  made  by  said  party  of  the 
second  part  prior  to  the  expiration  of  its  right  to  commence  new  work 
hereunder  and  on  which  work  is  in  progress,  and  to  secure,  remove,  have, 
enjoy  and  market  all  and  singular  the  oil  and  said  other  substances  there- 
from, so  long  as  said  works,  or  any  thereof,  shall  produce  oil,  or  any  of 
said  other  substances,  in  quantities  sufficient  to  pay  to  pump,  or  secure  and 
save:  and  party  of  the  first  part  hereby  grants,  confirms  and  extends  to 
party  of  the  second  part,  for  such  purposes,  all  and  singular  the  rights, 
privileges,  easements  and  interests  heretofore  described  and  granted  to 
construct,  erect,  keep,  maintain,  and  operate  all  water  and  sources  of  water 
supply,  all  roads,  pipe  lines,  telephone  lines,  appliances,  machinery,  build- 
ings and  structures  of  whatever  nature  necessary  or  convenient  for  use  in 
connection  with  the  pumping  or  otherwise  operating  said  wells  and  other 
works,  and  the  developing,  securing,  removing  and  marketing  such  oil  or 
other  products,  so  long  as  said  wells,  tunnels,  or  excavations,  or  any 
thereof,  shall  produce  oil,  or  any  of  said  other  substances,  in  quantities  suf- 
ficient to  pay  to  pump,  or  otherwise  secure  and  save.  And  while  the  said 
party  of  the  second  part  shall  so  operate  any  of  such  well  or  wells,  the 
said  parties  of  the  first  part  shall  not  put  down  any  well  or  otherwise  oper- 
ate for  oil,  or  permit  any  other  person,  firm  or  corporation  to  so  drill  or 
operate,  on  said  demised  premises,  within  600  feet  of  any  of  the  wells 
drilled  by  said  partv  of  the  second  nart.  Such  forfeiture  or  suspension 
of  said  rights  shall  be  the  only  remedy  reserved  to  said  parties  of  the  first 
part  for  breach  of  this  agreement  to  drill  said  wells  by  said  party  of  the 
second  part. 

I3th.  At  the  termination  of  the  rights  of  the  party  of  the  second 
part  hereunder,  either  in  whole  or  in  part,  or  on  the  final  abandonment  of 
said  wells,  or  any  thereof,  drilled,  or  sunk  hereunder,  party  of  the  second 
part  shall  have  the  right  to  remove  from  said  premises  any  and  all  tubings, 
casings,  rii?s,  pipes,  machinerv,  telephone  lines,  and  any  and  all  other  ap- 
pliances and  structures  of  whatever  nature  owned  by  it,  or  placed  by  it 
upon  said  premises. 

I4th.  The  following  covenants  herein  contained  by  and  on  behalf  of 
party  of  the  second  part  are  of  the  essence  of  this  contract,  to-wit : 

First:  To  pay  and  deliver  the  rent  and  royalty  in  and  by  this  con- 
tract stipulated  and  required  to  be  paid  parties  of  the  first  part  by  party 
of  the  second  part,  of  and  from  the  crude  petroleum  oil  and  other  hydro- 
carbon substances  produced  or  secured  and  saved  from  said  demised  prem- 
ises. 

Second :  To  pump  or  otherwise  operate  wells  and  other  works  of 
party  of  the  second  part  on  and  in  said  demised  premises  diligently  and  in 


REAL,  ESTATE  AT  A  PROFIT  157 

a  business-like  manner,  in  accordance  with  the  provision  of  this  contract 
in  that  behalf. 

And  it  is  agreed  that  upon  the  material  failure  of  party  of  the  second 
part  to  keep  and  nerform  all  or  any  one  of  said  essential  covenants,  and 
upon  the  continuance  of  such  material  failure  or  default  for  a  period  of 
thirty  (30)  days  after  service  of  written  notice  given  by  parties  of  the 
first  part  to  the  party  of  the  second  part,  particularly  designating  the  mat- 
ter or  thing  constituting  such  material  failure  or  default,  this  lease  and  con- 
tract and  all  the  rights,  privileges,  interests,  easements,  servitudes  and 
hereditaments  by  it  created  and  granted  (excepting  the  rights  and  priv- 
ileges hereinbefore  contained  for  removal  of  property  on  the  termination 
of  this  contract)  shall  forthwith  cease  and  determine,  and  thereupon  the 
parties  of  the  first  part  may  forthwith  re-enter  upon  each  and  every 
portion  of  said  demised  premises  affected  hereby  in  possession  of  the 
party  of  the  second  part,  and  the  same  and  every  portion  thereof  have, 
hold  and  enjoy  as  if  this  instrument  had  never  been  executed. 

1 5th.  All  of  the  provisions,  covenants,  agreements  and  stipulations 
herein  contained,  by  which  either  one  of  the  parties  hereto  is  bound,  shall 
in  like  manner  be  binding  upon  the  successors  and  assigns  of  the  party 
so  bound ;  and  those  which  are  for  the  benefit  of  either  of  the  parties  shall 
in  like  manner  inure  to  the  benefit  of  the  successors  and  assigns  of  the 
party  so  benefited. 

IN  WITNESS  WHEREOF,  said  parties  of  the  first  part  have  hereunto 
set  their  hands  and  seals,  and  said  party  of  the  second  part  has  hereunto 
caused  its  corporate  name  and  its  corporate  seal  to  be  affixed  by  its  Presi- 
dent and  its  Secretary,  thereunto  duly  authorized  by  a  resolution  of  its 
Board  of  Directors,  the  day  and  year  first  hereinabove  written. 

ALFRED    BENTON.  (Seal) 

JANE    BENTON,  (Seal) 

(Corporate  Seal)  BLUE  BIRD  OIL  COMPANY. 

By  PETER  PRIOR,  President. 
By   PRESTER  JOHN,   Secretary. 

(To  this  lease  should  be  attached  ratification  by  stockholders  of  addi- 
tional mining  ground  by  lease,  similar  to  like  ratification  shown  in  Form 
No.  19.) 

FORM  NO.  65— CONTRACT  FOR  DRILLING  OIL  WELLS. 

THIS  AGREEMENT,  Made  this  20th  day  of  June,  1905,  by  and  between 
M.  L.  Pembroke,  of  the  City  of  Los  Angeles,  County  of  Los  Angeles, 
State  of  California,  party  of  the  first  part,  and  Blue  Bird  Oil  Company,  a 
corporation,  having  its  principal  place  of  business  at  Los  Angeles,  Califor- 
nia, party  of  the  second  part, 

WITNESSETH  i  That  the  said  party  of  the  first  part  has  covenanted 
and  agreed  with  the  said  party  of  the  second  part,  its  successors  and  as- 
signs, and  does  hereby,  as  an  independent  contractor,  covenant  and  agree 
to  drill  for  said  party  of  the  second  part  two  (2)  wells,  to  be  numbered  i 
and  2,  for  the  ^urpose  of  obtaining  petroleum  oil,  said  two  wells  to  be  lo- 


158  HOW  TO  BUY  AND  SEU, 

cated  from  time  to  time,  and  in  ample  time,  by  said  party  of  the  second 
part,  at  sites  to  be  selected  by  it  on  that  certain  parcel  of  land  situate  in 
the  County  of  Kern,  State  of  California,  described  as  the  Southwest  Quar- 
ter (S.  W.  *A)  of  Northwest  Quarter  (N.  W.  1A),  Section  Thirty-two 
(32),  T.  28  S.,  R.  28  E.,  M.  D.  B.  &  M. 

The  materials,  machinery  and  appliances  necessary  for  the  drilling 
and  completing  of  each  of  said  two  wells  shall  be  furnished,  and  the  work 
of  drilling  the  same  shall  be  done,  in  the  manner  hereinafter  specified,  to- 
wit: 

Roads  and  Rig  Grades:  The  said  party  of  the  second  part  shall 
make  all  necessary  grades  at  the  well  sites  to  be  selected  as  aforesaid,  by 
it,  and  shall  also  make  all  roads  leading  thereto  which  are  necessary  to 
be  made. 

Rigs,  Machinery  and  Tools:  The  said  party  of  the  second  part  shall 
furnish,  at  its  own  cost  and  expense,  a  complete  drilling  rig  of  good  qual- 
ity for  each  well,  erected  on  the  locations  selected  as  above,  and  also  the 
necessary  wooden  conductor,  boiler,  engine,  belt,  bull  rope,  and  steam  and 
gas  connections,  and  all  casing  as  hereinafter  provided,  which  rig,  as  also 
all  appliances  of  every  kind  furnished  by  the  said  party  of  the  second  part, 
shall  be  examined  by  the  said  party  of  the  first  part  and  when  accepted 
by  said  party  of  the  first  part,  said  rig  or  appliances  shall,  for  the  purposes 
of  this  agreement,  be  deemed  to  be  of  good  quality,  and  any  use  of  the 
same  by  said  party  of  the  first  part  shall  constitute  an  acceptance  thereof 
by  him.  The  said  party  of  the  first  part  shall,  at  his  own  cost  and  ex- 
pense, keep  each  drilling  rig  in  good  repair  while  the  well  is  being  drilled, 
and  shall  put  in  place  and  connect  up  at  the  well,  the  boiler,  engine,  etc., 
furnished  by  said  party  of  the  second  part.  The  rigs,  machinery  and  ap- 
pliances furnished  by  said  party  of  the  second  part  for  the  drilling  of  any 
well  hereunder  shall,  upon  the  completion  of  such  well,  be  returned  to  said 
party  of  the  second  part  in  as  good  condition  as  when  received  by  the 
party  of  the  first  part,  ordinary  wear  and  tear  and  damage  by  the  ele- 
ments excepted. 

Water  and  Fuel:  The  said  party  of  the  second  part  shall  furnish,  at 
its  own  cost  and  expense,  all  water  that  may  be  required  for  drilling  each 
well  hereunder,  and  also  will  furnish  all  crude  oil  which  may  be  required 
for  fuel ;  provided,  however,  that  where  the  supply  of  water  furnished  here- 
under shall  fail  or  be  cut  off  for  any  reason,  then  no  claim  for  damage 
shall  lie  against  the  party  of  the  second  part,  it  being  understood  that  said 
party  of  the  second  part  shall  at  all  times  use  due  diligence  and  in  good 
faith  endeavor  to  provide  a  sufficient  supply  of  water. 

Drilling  and  Drilling  Crews:  Said  party  of  the  first  part  shall  com- 
mence forthwith  to  perform  the  work  to  be  done  hereunder,  and  shall 
prosecute  such  work  on  each  of  said  wells  continuously  and  in  good  faith 
to  success  or  abandonment,  Sundays  excepted;  and  he  further  agrees  to 
have  a  full  drilling  crew  of  four  men  at  work  in  the  actual  work  of  drill- 
in?  within  thirty  (30)  days  from  the  date  hereof.  The  said  party  of  the 
first  part  shall  always  keep  at  least  two  full  drilling  crews  of  four  men  each 


ESTATE  AT  A  PROFIT  159 

at  work  continuously  until  the  said  two  wells  are  drilled  to  completion  or 
abandonment. 

Depth  of  Well;  Price  for  Drilling:  Each  of  said  wells,  unless  sooner 
abandoned  by  direction  of  the  party  of  the  second  part,  shall  be  drilled  to 
a  depth  of  eleven  hundred  (noo)  feet,  and  the  consideration  for  said 
drilling  and  for  the  materials  furnished,  and  for  the  labor  provided  incident 
thereto,  shall  be  one  dollar  and  fifty  cents  per  linear  foot  for  each  well 
drilled,  and  no  more. 

It  is  further  understood  and  agreed  by  the  parties  hereto  that  the 
said  party  of  the  first  part  will,  at  the  option  of  said  party  of  the  second 
part,  continue  the  drilling  of  either  of  these  wells  after  the  said  well  nas 
reached  a  depth  of  noo  feet,  so  long  as  he  can  make  expenses,  which,  for 
the  purposes  of  this  contract,  are  to  be  considered  as  being  thirty  (30) 
dollars  per  diem  for  each  string  of  tools. 

Kinds  and  Sizes  of  Casing  to  Be  Used:  The  sizes  of  casing  to  be 
furnished  by  the  party  of  the  second  part  and  used  by  the  part  of  the  first 
part  in  the  said  wells,  are  as  follows : 

nfys  inch  casing,  weighing  30  Ibs.  per  linear  foot, 

8^4  inch  casing,  weighing  24  Ibs.  per  linear  foot, 

6§^  inch  casing,  weighing  17  Ibs.  per  linear  foot. 

The  said  party  of  the  first  part  agrees  to  drill  the  hole  of  each  well 
hereunder  of  such  size  as  will  admit  of  the  using,  commencing  with  the 
largest  size,  of  the  greatest  number  of  linear  feet  of  the  respective  sizes  of 
casing;  it  being  understood  that  the  chief  purpose  and  use  of  the  iif6  inch 
casing  is  to  shut  off  the  surface  water,  and  that  when  that  is  accomplished, 
the  use  of  said  ii^H?  inch  casing  shall  be  abandoned. 

Shutting  Off  Water:  If  water  shall  be  encountered  at  any  point  in 
either  of  said  wells  while  the  same  is  being:  drilled,  the  party  of  the  first 
part  agrees  to  case  off  all  such  water  before  continuing  to  drill  in  said 
well,  and  whenever  water  has  been  cased  off  in  either  of  said  wells,  as 
aforesaid,  said  party  of  the  first  part  agrees  to  notify  said  party  of  the 
second  part,  or  its  agent,  thereof,  and  to  discontinue  drilling  in  said  well  at 
least  12  hours  so  that  said  party  of  the  second  part,  if  it  so  elect,  may 
"thief"  the  well  for  water ;  and  if  the  water  be  found  coming  into  the  well 
upon  such  test,  or  if  the  casing,  for  any  cause,  is  not  tight  and  properly 
put  into  the  well  and  the  water  is  not  properly  shut  off,  the  said  party  of 
the  first  part  agrees  to  adjust  the  same  to  the  satisfaction  of  the  party  of 
the  second  part  before  continuing  to  drill  in  said  well. 

Drilling  in  Oil  Sand:  When  each  of  said  wells  shall  have  reached 
the  oil-bearing  sand,  or  other  rock  or  material  bearing  oil,  the  party  of  the 
second  part  shall  prescribe  the  methods  to  be  followed  in  drilling  through 
the  tand  or  other  oil-bearing  rock,  and  of  inserting  the  casing  and  of  per- 
forating the  same. 

Saving  Oil:  The  said  party  of  the  first  part  also  agrees  to  save  all, 
or  as  much  as  possible,  of  any  oil  that  may  be  pumped  by  means  of  the 
sand  pump  from  each  of  said  wells2  and  take  such  means,  in  accordance 
with  the  best  usage,  for  obtaining  and  saving  from  each  of  said  wells  any 


160  HOW  TO  BUY  AND  SEU, 

and  all  oil  that  may  be  encountered  in  drilling.     All  of  said  oil  shall  be 
the  exclusive  property  of  the  party  of  the  second  part. 

Completion  of  Wells:  It  is  understood  and  agreed  by  and  between  the 
parties  hereto  that  said  party  of  the  second  part  shall  determine  when  a 
well  which  has  been  drilled  to  less  depth  than  noo  feet,  is  completed,  and 
that  upon  any  completion  of  any  wells  or  wells  hereby  contracted  for, 
said  party  of  the  first  part,  at  his  own  cost  and  expense,  shall  pull  all  casing 
in  said  well  that  can  be  pulled,  and  which  said  party  of  the  second  part  shall 
require  to  be  pulled,  and  shall  thoroughly  bail  and  sand  pump  each  of  said 
wells  until  all  drillings  and  sediment  are  removed  therefrom,  and  until 
said  well  shall  be  cleaned  to  the  satisfaction  of  the  said  party  of  the  sec- 
ond part,  and  shall  thoroughly  perforate  the  casing,  wherever  it  passes 
through  the  oil-bearing  iormation,  in  such  manner  as  to  allow  the  oil  to 
flow  freely  through  the  casing  into  the  well ;  it  being  understood  and  agreed 
that  the  party  of  the  second  part  shall  furnish  the  perforator,  together  with 
one  man  to  supervise  and  direct  the  operation  of  the  same,  but  the  party 
of  the  first  part  shall  furnish  all  other  labor  in  and  about  perforating  the 
casing. 

Dry  Holes:  Said  party  of  the  first  part,  in  the  event  of  a  well  being 
in  a  dry  hole,  shall  draw  all  of  the  casing  under  the  direction  and  to  the 
satisfaction  of  the  superintendent  of  the  party  of  the  second  part.  If  the 
casing  cannot  be  drawn  or  pulled,  the  party  of  the  first  part  shall  cut  the 
casing  as  may  be  directed  by  said  party  of  the  second  part,  and  draw  or 
pull  so  much  of  the  casing  as  may  be  obtained  by  such  cutting. 

Time  for  Drilling:  It  is  further  understood  and  agreed  that  time  is 
of  the  essence  of  this  contract,  and  that  in  case  said  party  of  the  first  part 
shall  fail  or  neglect,  for  a  space  of  ten  days,  to  continue  the  work  of  drill- 
ing on  cither  of  said  wells,  unavoidable  delays  excepted,  then,  in  such 
event,  such  failure  or  neglect  shall  of  itself  work  a  forfeiture  of  the  right 
of  the  party  of  the  first  part  to  receive  payment  for  the  number  of  feet 
already  drilled  by  him  in  said  well,  and  the  said  party  of  the  second  part, 
without  any  notice  to,  or  demand  upon,  the  party  of  the  first  part,  may  de- 
clare this  agreement  terminated,  and  said  party  of  the  second  part  shall 
have  the  right,  at  any  time  after  such  forfeiture,  to  take  possession  of 
such  well,  and  at  its  pleasure  to  abandon  the  same  without  liability  to  the 
party  of  the  first  part  for  any  portion  of  the  contract  price  for  such  well. 
The  party  of  the  second  part  shall  also  have  the  right  at  any  time  after  such 
forfeiture,  if  it  so  elect,  to  take  possession  of  all  appliances  belonging  to 
said  party  of  the  first  part,  and  if  it  so  elect,  to  drill  said  well  to  com- 
pletion. In  case  it  shall  succeed  in  completing  such  well,  the  cost  for  such 
comoletion,  without  any  allowance  to  the  party  of  the  first  part  for  the 
use  of  the  appliances  belonging  to  him,  shall  be  deducted  from  the  con- 
tract price  of  said  well,  and  the  balance,  if  any,  shall  be  paid  over  to  said 
oarty  of  the  first  part  upon  demand;  but  if  said  party  of  the  second  part 
shall  not  succeed  in  completing  said  well,  it  shall  not  be  liable  to  the  party 
of  the  first  oart  in  any  sum  whatever,  and  after  such  completion  shall  re- 
turn said  appliances  belonging  to  the  party  of  the  first  part  to  him  in  as 


REAI,  ESTATE  AT  A  PROFIT  161 

good  order  as  when  received,  the  natural  wear  and  tear,  accidental  loss 
and  breakage,  only  excepted. 

Discontinuing  Work:  The  said  party  of  the  second  part  shall  have 
the  right  and  option  to  have  the  drilling  of  any  well  discontinued  at  any 
time  during  the  progress  of  the  work  thereon  by  giving  notice  thereof  to 
said  party  of  the  first  part,  and  thereupon  the  drilling  of  such  well  shall 
be  deemed  to  be  completed,  and  said  party  of  the  first  part  shall  forthwith 
stop  drilling  operations  therein,  and,  at  the  option  of  said  party  of  the 
second  part,  and  as  may  be  directed  by  it,  shall,  if  the  well  be  an  oil-pro- 
ducing well,  put  same  in  proper  condition,  according  to  best  usage,  to  save 
the  oil  therein;  but  if  such  well  be  not  an  oil-producing  well,  then  said 
party  of  the  first  part  shall  draw  the  casing  therefrom  and  plug  said  well 
in  the  manner  herein  provided,  and  as  may  be  directed  by  said  party  of  the 
second  part. 

Water  Wells:  In  the  event  that  either  of  said  wells  which  shall  be 
drilled  to  such  depth  as  said  party  of  the  second  part  may  determine,  shall 
not  produce  oil  in  paying  quantities,  or  shall  contain  water,  and  said  party 
of  the  second  part  shall  desire  to  have  the  casing  all  pulled  therefrom  and 
the  hole  plugged,  then,  in  such  event,  the  said  party  of  the  first  part  agrees 
to  draw  all  casing  from  said  hole,  and  to  properly  fill  up  the  hole  and  to 
plug  off  the  water  therein,  under  the  supervision  of  the  party  of  the  second 
part,  so  that  the  same  shall  not  affect  or  enter  into  the  oil-bearing  forma- 
tion. 

Delivery  of  Wells:  No  part  of  the  contract  price  herein  agreed  to 
be  paid  shall  be  paid  until  each  of  the  said  wells  is  completed  to  the  depth 
of  eleven  hundred  (noo)  feet,  or  to  such  depth  less  than  eleven  hundred 
feet  as  said  party  of  the  second  part  may  determine,  and  until  the  said  well 
shall  have  been  delivered  to  the  party  of  the  second  part  in  thoroughly 
good  order,  as  hereinabove  provided,  free  and  clear  of  all  obstructions  in 
the  well,  and  of  all  encumbrances,  liens  and  debts  of  every  kind,  and  until 
evidence  to  that  effect  shall  be  furnished  to  the  satisfaction  of  the  party  of 
the  second  part.  The  contract  price  for  each  well  completed  as  aforesaid 
shall  be  paid  on  the  fifteenth  day  of  the  month  next  following  the  month  in 
which  such  well  shall  have  been  delivered. 

Drilling  Reports:  The  said  party  of  the  first  part  shall  keep  a  full 
and  accurate  report  as  the  work  of  drilling  each  well  progresses,  showing 
the  formation  encountered  and  passed  through,  the  amount  of  casing  of 
each  size  used  and  its  condition,  the  points  at  which  water  and  oil  are 
found,  and  of  all  other  matters  necessary  to  a  full  and  complete  history 
of  each  well,  and  upon  the  completion  thereof  shall  furnish  full  and  ac- 
curate report  in  writing  of  the  same  to  the  party  of  the  second  part. 

Materials  to  be  Furnished  by  Driller:  The  party  of  the  first  part 
agrees  to  furnish  at  his  sole  cost  and  expense,  all  labor,  tools,  supplies 
and  appliances  of  every  name  and  nature  not  specifically  mentioned  in 
this  contract  to  be  furnished  by  the  party  of  the  second  part,  including 
all  drilling  and  fishing  tools,  cables,  sand-lines  and  all  other  articles 
needed,  used  or  charged  to  said  work  of  carrying  out  this  contract. 


162  HOW   TO   BUY   AND 

Mechanics  Liens:  Said  party  of  the  first  part  furthermore  agrees 
that  no  mechanics  lien  or  liens  shall  be  incurred,  created,  or  filed,  orf 
recorded  against  said  premises,  or  any  part  thereof;  that  no  liens  or  any 
incumbrance  whatever  shall  be  created,  suffered  or  permitted  on  fekid 
premises,  and  that  said  party  of  the  first  part  shall  save  and  keep  harmless 
said  party  of  the  second  part,  from  all  liens  and  incumbrances,  and 
actions  and  proceedings  to  enforce  such  liens  and  incumbrances,  or  any 
of  them,  and  from  all  damages,  expenses,  costs,  and  attorney  fees,  which 
sjaid  party  of  the  second  part  may  incur  by  reason  of  or  on  account  of 
such  actions  or  proceedings,  or  any  of  them. 

Contract  Not  to  be  Assigned:  It  is  furthermore  expressly  agreed 
that  said  party  of  the  first  part  shall  not  assign  this  agreement,  or  any 
of  the  rights  herein  mentioned,  or  sub-contract  said  work,  without  first 
obtaining  the  written  consent  thereto  of  said  party  of  the  second  part, 
but  shall  keep  said  work  under  his  personal  supervision  and  control. 

Heirs  and  Assigns  Bound:  Everything  herein  contained  which  in 
any  way  affects  or  binds  either  of  the  parties  hereto  shall  in  like  man- 
ner affect  and  bind  their,  and  each  of  their,  respective  heirs,  executors, 
administrators,  successors  and  assigns;  provided,  however,  that  this  con- 
tract shall  not  be  capable  of  assignment  by  said  party  of  the  first  part 
except  in  the  manner  and  to  the  extent  herein  specified. 

IN  WITNESS  WHEREOF,  the  said  party  of  the  first  part  has  hereunto 
set  his  hand  and  seal,  and  the  party  of  the  second  part  has  hereunto 
caused  its  corporate  name  to  be  subscribed  and  its  corporate  seal  to  be 
affixed  by  its  President  and  its  Secretary,  the  day  and  year  first  above 

written. 

M.  L.  PEMBROKE.  (Seal) 

(Corporate  Seal)  BLUE  BIRD  OIL  COMPANY. 

By  PETER  PRIOR,  its  President. 
By  PRESTER  JOHN,  its   Secretary. 

FORM  NO.  66— ASSIGNMENT  OF  LEASE. 

KNOW  ALL  MEN  BY  THESE  PRESENTS:  That  I,  Benjamin  Butler,  of 
the  County  of  Ventura,  State  of  California,  in  consideration  of  Ten  Dol- 
lars, gold  coin  of  the  United  States  of  America,,  to  me  in  handi  paid  by 
James  Harbin,  of  the  County  and  State  aforesaid,  the  receipt  whereof  is 
hereby  acknowledged,  do,  by  these  presents,  sell,  assign,  transfer  and  set 
over  unto  said  James  Harbin  that  certain  indenture  of  lease,  bearing  date 
the  23d  day  of  August,  A.  D.  1905,  made  between  O.  C.  Clark,  therein 
described  as  party  of  the  first  part,  to  me,  the  said  Benjamin  Butler, 
therein  described  as  party  of  the  second  part,  thereby  leasing  for  the  term 
of  ten  years  those  certain  premises  situate  in  the  County  of  Ventura, 
State  of  California,  bounded  and  particularly  described  as  follows,  to-wit: 

(Description.) 

Said  lease  being  of  record  in  the  office  of  the  County  Recorder  of 
the  County  of  Ventura,  in  Book  33  of  Leases,  at  page  269,  to  which  said 
lease,  and  the  said  record  thereof,  reference  is  hereby  made  as  a  part 
hereof : 


REAL  ESTATE  AT  A  PROFIT  163 

To  Have  and  to  Hold  the  same,  and  the  premises  therein  described, 
unto  the  said  James  Harbin,  his  heirs  and  assigns,  for  and  during  all  the 
rest,  residue  and  remainder  of  the  term  of  years  yet  to  come  in  said 
indenture  of  lease  mentioned;  subject,  nevertheless,  to  the  reservations 
of  rent  and  other  covenants,  conditions  and  provisos  therein  also  men- 
tioned ;  And  I  do  hereby  covenant  and  agree  to  and  with  said  James  Har- 
bin, that  the  said  assigned  premises  now  are  free  and  clear  of  and  from 
all  former  and  other  gifts,  grants,  bargains,  sales,  leases,  judgments,  execu- 
tions, back  rents,  taxes,  assessments,  and  incumbrances,  by  me  suffered, 
made  or  created. 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  seal  this 
2Oth  day  of  November,  A.  D.  1905. 

BENJAMIN  BUTLER.     (Seal) 
(Acknowledgment.) 

FORM  NO.  67— NOTICE  TO  CHANGE  TERMS  OF  LEASE. 
To  Owen  Cruthers,  Esq.: 

You  are  hereby  notified  that  at  the  expiration  of  the  present  month 
of  your  tenancy,  which  will  be  on  the  fifteenth  day  of  May,  A.  D.  1905, 
the  terms  of  your  lease  of  the  premises  you  occupy,  under  tenancy  from 
month  to  month,  situate  in  the  City  of  Los  Angeles,  County  of  Los  An- 
geles, State  of  California,  and  described  as  follows,  to-wit :  All  that  cer- 
tain store  designated  and  known  by  the  No.  536  Wilmington  Street,  will 
be  changed  as  follows,  to-wit : 

The  monthly  rent  thereof  will  be  two  hundred]  dollars  in  U.  S. 
gold  coin  per  month,  payable  monthly  in  advance,  on  the  sixteenth  day 
of  each  and  every  month  you  continue  to  hold  possession  thereof,  after  the 
expiration  of  the  current  month,  instead  of  the  sum  of  fifty  dollars  here- 
tofore paid  by  you. 

Dated  at  Los  Angeles,  Cal.,  April  isth,  1905. 

JAMES  BROWN,  Landlord 

FORM  NO.  6&— NOTICE  TO  PAY  RENT  OR  QUIT. 
To  Samuel  Jessup,  Tenant  in  Possession: 

Within  Three  Days  after  the  service  on  you  of  this  notice,  you  are 
hereby  required  to  Pay  the  rent  of  the  premises  hereinafter  described,  am} 
which  you  now  hold  possession  of,  amounting  to  the  sum  of  $60.00,  being 
the  rent  from  the  ist  day  of  May,  1905,  to  the  1st  day  of  July,  1905;  or 
you  are  hereby  required  to  Deliver  Up  possession  of  the  herein  described 
premises  within  said  three  days  after  service  on  you  of  this  notice,  to 
John  Doe,  who  is  hereby  authorized  to  receive  possession  thereof,  or  any 
Rent  due  and  unpaid;,  from  you,  or  I  shall  institute  legal  proceedings 
against  you  to  recover  possession  of  said  premises,  with  Treble  Rents. 

Said  premises  are  situated  in  the County  of  Ventura,  State 

of  California,  and  described  as  follows: 

(Description.) 

designated  and  known  by  the  No.  1224  Yale  Street, 

Yours,  etc., 

FRED'K  FOSTER. 
Dated,  Los  Angeles,  Cal.,  loth  day  of  July,  1905. 


164  HOW    TO   BUY   AND 

FORM  NO.  69— NOTICE  TERMINATING  TENANCY. 

To  Thomas  Shyrocks,  Tenant  in  Possession: 

You  are  hereby  notified  that  on  the  first  day  of  September,  A.  D. 
1905,  your  lease  or  tenancy  for  the  premises  you  hold  possession  of,  sit- 
uate in  the  City  and  County  of  Los  Angeles,,  State  of  California,  and  de- 
scribed as  follows,  to-wit : 

(Description.) 

will  terminate  and  end,  and  you  are  requested  and  required  to   deliver 
possession  thereof  to  Mr.  Wm.  Payup  on  said  first  day  of  September,  1905. 

Yours,  etc., 

CHARLES  CREWEL. 
Dated,  Los  Angeles,  Cal.,  this  3ist  day  of  July,  1905. 

FORM    NO.    70— NOTICE    OF    LOCATION    OF   WATER    RIGHT. 

NOTICE  is  HEREBY  GIVEN,  that  the  undersigned,  B.  F.  Sturgiss,  of 
Hollister,  San  Benito  County,  California,  has  duly  located  and  does  hereby 
claim  Sixteen  (16)  inches,  measured  under  a  four-inch  pressure,  of  that 
certain  stream  or  streams  of  water  rising  upon,  and  flowing  down  a  ravine  in, 
the  S.  E.  Y$  of  the  N.  E.  J4  of  Section  Twenty-three  (23)  in  Township  Six- 
teen (16)  South  of  Range  Ten  (10)  East,  M.  D.  B.  &  M.,  in  San  Benito 
County,  State  of  California,  at  the  place  where  this  notice  is  conspicu- 
ously posted  on  a  board  nailed  to  a  stake  driven  in  the  ground,  said 
place  being  the  point  of  intended  diversion,  to-wit:  At  a  point  in  said 
stream  or  streams  distant  about  360  feet  from  point  of  rocks  surrounded 
by  chaparral,  said  line  running  a  little  south  of  east,  including  all  springs 
within  a  strip  of  land  one  'hundred  (100)  feet  wide  on  each  side  of  said 
southeasterly  line; 

That  the  purposes  for  which  the  undersigned  claims  said  water  are 
for  domestic  use,  and  for  the  drilling  of  wells,  and  for  generating  power 
and  steam  to  be  used  in  carrying  on  petroleum  mining  operations,  and 
for  other  mechanical  purposes ; 

That  the  undersigned  intends  to  divert  said  water  at  the  point  afore- 
said, and  to  use  said  water  for  the  purposes  aforesaid,  on  Section  34,  T. 
16  S.  of  R.  10  E.,  M.  D.  B.  &  M.,  and  upon  other  lands  to  which  the 
undersigned  may  desire  to  convey  said  water; 

That  the  means  by  which  the  undersigned  intends  to  divert  said 
water  and  to  convey  the  same  to  the  place  of  intended  use,  are :  A  dam 
or  reservoir  or  tank  at  the  point  of  diversion,  and  two-inch  pipes  to  con- 
vey said  water  thence  to  place  of  intended  use. 

Dated  on  the  ground,  this  I4th  day  of  February,  A.  D.  1905. 

B.  F.  STURGISS. 
Witnesses : 

JOHN  A.  KING, 
A.  M.  WELLMAN. 
State  of  California,  County  of  San  Benito,  ss. 

John  A.  King  and  A.  M.  Wellman,  being  first  duly  sworn,  depose 
and  say:  That  on  the  I4th  day  of  February,  1905,  they  were  present 


REAL  ESTATE  AT  A  PROFIT  165 

when  the  notice  by  B.  F.  Sturgiss  of  his  claim  to  water  rising 
upon,  and  flowing  down  a  ravine  in,  S.  E.  l/4  of  N.  E.  y±  lof  Section/ 
23,  Township  16  South  of  Range  10  East,  M.  D.  B.  &  M.,  in  San  Benito 
County,  California,  of  which  notice  the  annexed  is  a  full,  true  and  accu- 
rate copy,  was  posted  by  said  B.  F.  Sturgiss  in  a  conspicuous  place  at 
the  point  of  intended  diversion  described  in  said  notice,  to-wit:  At  a 
ipoint  in  said  stream  distant  about  360  feet  from  point  of  rocks  Sur-4 
rounded  by  chaparral,  said  line  running  a  little  south  of  east,  and  such 
location  including  all  springs  100  feet  on  each  side  of  said  southeasterly 
line;  and  that  said  B.  F.  Sturgiss  has  constructed  the  works  and  the 
pipe-line  in  and  by  which  he  intends  to  divert  said  water  and  has  con-» 
ducted  said  water  to  the  place  of  intended  use. 

JOHN  A.  KING, 
B.    F.    STURGISS. 

Subscribed  and  sworn  to  before  me,  this  i6th  day  of  February,  A.  D. 
•1905. 

(Notarial  Seal)  FRANK  P.  McCoNNEix, 

Notary  Public  in  and  for  the  County  of  San  Benito,  State  of  California. 

FORM  NO.  7I-GENERAL  POWER  OF  ATTORNEY. 

KNOW  ALL  MEN  BY  THESE  PRESENTS  That  I,  Barney  Barnato,  of  the 
City  and  County  of  San  Francisco,  State  of  California,  have  made,  con- 
stituted and  appointed,  and  by  these  presents  do  make,  constitute  and  ap- 
point Abner  Anderson,  of  said  City,  County  and  State,  my  true  and  law- 
ful attorney,  for  me  and  in  my  name,  place  and  stead,  and  for  my  use  and 
benefit,  to  bring,  institute  and  maintain  any  action  at  law  or  in  equity  which 
he  or  my  attorneys  at  law  may  deem  advisable  or  for  my  interest  to  be 
brought,  instituted  or  maintained ;  to  ask,  demand,  sue  for,  recover,  collect 
and  receive  all  sums  of  money,  debts,  dues,  accounts,  legacies,  bequests,  in- 
terests, dividends,  annuities  and  demands  whatsoever  as  are  now  or  shall 
hereafter  become  due,  owing,  payable  or  belonging  to  me;  and  to  have, 
use  and  take  all  lawful  ways  and  means  in  my  name  or  otherwise  for  the 
recovery  thereof,  by  attachments,  arrests,  distress,  or  otherwise,  and  to 
compromise  and  agree  for  the  same,  and  acquittances  or  other  sufficient  dis- 
charges for  the  same  for  me  and  in  my  name,  to  make,  seal  and  deliver ;  to 
bargain,  contract,  agree  for,  purchase,  receive  and  take  lands,  tenants, 
hereditaments,  and  accept  the  seisin  and  possession  of  all  lands  and  all 
deeds  and  other  assurances  in  the  law  therefor,  and  to  lease,  let,  demise, 
bargain,  sell,  give  options  and  contracts  of  sale  in  respect  to,  remise,  con- 
vey, mortgage  and  hypothecate  lands,  tenements  and  hereditaments,  upon 
such  terms  and  conditions,  and  under  such  covenants  as  he  shall  think  fit. 
Also,  either  in  person  or  bv  proxy,  to  vote  on  any  stock  bonds  or  other 
securities  belonging  to  me,  at  any  meeting  of  stockholders  or  of  bond  or 
certificate  holders  or  of  creditors,  however  convened.  Also  to  bargain 
and  agree  for,  buy,  sell,  mortgage,  hypothecate  and  in  any  and  every  way 
and  manner  deal  in  and  with  goods,  wares  and  merchandise,  choses  in 
action,  and  other  property  in  possession  or  in  action ;  and  to  make,  do  and 


166  HOW  TO  BUY  AND 

transact  all  and  every  kind  of  business  of  what  nature  or  kind  soever ;  and, 
also,  for  me  and  in  my  name  and  as  my  act  and  deed,  to  sign,  seal,  execute, 
deliver  and  acknowledge  such  deeds,  covenants,  indentures,  agreements, 
mortgages,  hypothecations,  bottomries,  charter  parties,  bills  of  lading,  bills, 
bonds,  notes,  receipts,  evidences  of  debt,  releases  and  satisfaction  of  mort- 
gage, judgment  and  other  debts  and  proxies  to  vote  stock  or  bonds,  and 
such  other  instruments  in  writing  of  whatever  kind  or  nature  as  may  be 
necessary  or  proper  in  the  premises. 

GIVING  AND  GRANTING  unto  my  said  attorney  full  power  and  authority 
to  do  and  perform  all  and  every  act  and  thing  whatsoever  requisite  and 
necessary  to  be  done  in  and  about  the  premises,  as  fully  to  ?11  intents  and 
purposes  as  I  might  or  could  do  if  personally  present,  hereby  rati- 
fying and  confirming  all  that  my  said  Attorney  shall  lawfully  do  or  cause 
to  be  done  by  virtue  of  these  presents. 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  seal  the  2Oth 
day  of  April,  A.  D.,  one  thousand  nine  hundred  and  five. 

BARNEY  BARNATO.        (Seal) 
(Acknowledgment.) 

FORM  NO.  72— REVOCATION  OF  POWER  OF  ATTORNEY. 

KNOW  ALL  MEN  BY  THESE  PRESENTS,  That,  whereas,  I,  Barney  Bar- 
tiato,  of  the  City  and  County  of  San  Francisco,  State  of  California,  in 
and  by  my  letter,  warrant  or  power  of  attornev,  in  writing,  bearing  date 
the  twenty-ninth  day  of  April,  A.  D.  one  thousand  nine  hundred  and  five, 
did  make,  constitute  and  appoint  Abner  Anderson,  of  said  City,  my  true 
and  lawful  Attorney,  for  the  purposes  and  with  the  powers  therein  set 
forth,  as  will  more  fully  and  at  large  appear  by  reference  thereto,  or  to  the 
record  thereof,  made  on  the  said  twenty-ninth  day  of  April,  A.  D.  1905, 
in  Book  "3,"  of  Powers  of  Attorney,  page  48,  in  the  office  of  the  County 
Recorder  of  the  said  County  of  San  Francisco. 

Now,  therefore,  I,  the  said  Barney  Barnato,  for  divers  good  causes 
and  considerations,  me  hereunto  moving,  have  revoked,  countermanded, 
annulled,  and  made  void,  and  by  these  presents  do  revoke,  countermand, 
annul,  and  make  void  the  said  Letter,  Warrant,  or  Power  of  Attorney, 
and  all  power  and  authority  thereby  given,  or  intended  to  be  given,  to  the 
said  Abner  Anderson. 

In  witness  whereof,  I  have  hereunto  set  my  hand  and  seal,  the 
twenty-second  day  of  May,  A.  D.  one  thousand  nine  hundred  and  five. 

BARNEY  BARNATO.     (L.  S.) 
(  Acknowledgment. ) 

FORM  NO.  73— POWER  OF  ATTORNEY  TO   COLLECT  INSUR- 
ANCE. 

KNOW  ALL  MEN  BY  THESE  PRESENTS,  That  I,  Edmund  Fitzgerald,  of 
Los  Angeles,  County  of  Los  Angeles,  State  of  California,  have  nom- 
inated, constituted  and  appointed,  and  by  these  presents  do  nominate,  con- 
stitute and  appoint,  Almon  H.  Fogg,  President  of  the  Houlton  Savings 


ESTATE  AT  A  PROFIT  167 

Bank,  of  Houlton,  Aroostook  County,  Maine,  my  true  and  lawful  attorney, 
for  me  and  in  my  name,  place  and  stead,  to  ask,  demand,  sue  for,  require, 
recover  and  receive,  any  sum  or  sums  of  money,  due  or  that  may  become 
due,  on  any  policy  of  insurance,  return  premiums  or  deposits,  that  may 
now  or  hereafter  be  due  to  me  by  reason  of  any  insurance  heretofore 
effected  by  me,  or  in  my  behalf,  or  assigned  or  transferred  to  me,  or  in 
which  I  may  have  any  interest,  on  any  property  or  premises  owned  or  con- 
trolled by  me,  or  in  which  I  have  any  interest  whatever  either  as  mort- 
gagee, lien  holder,  owner  or  tenant,  or  otherwise,  in  the  County  of 
Aroostook,  State  of  Maine,  and  upon  receipt  thereof  or  any  part  or  parts 
thereof,  in  my  name  to  make,  execute  and  deliver  any  and  all  receipts, 
releases  or  discharges  of  the  same,  and  all  other  papers  that  may  be  neces- 
sary for  that  purpose,  whether  under  seal  or  otherwise,  as  to  my  said  attor- 
ney may  seem  meet  and  proper  for  carrying  on  and  fully  completing  said 
business;  or,  in  case  of  absence  of  said  Almon  H.  Fogg,  or  his  inability 
to  act  as  my  said  attorney,  then  the  powers  hereby  conferred  upon  said 
Almon  H.  Fogg  shall  and  may  be  lawfully  exercised  by  F.  A.  Powers, 
Cashier  of  the  said  above  named  Houlton  Savings  Bank,  who  shall  be 
clothed  with  all  the  powers  and  authority  heretofore,  in  this  power  of  at- 
torney, conferred  upon  said  Almon  H.  Fogg:  Hereby  giving  and  grant- 
ing unto  my  said  attorney,  or  either  of  them,  acting  under  this  power  of 
attorney,  full  power  and  authority  to  do  and  perform  every  act  and  thing 
whatsoever  requisite  and  necessary  to  be  done  in  and  about  the  premises, 
as  fully  as  I  could  do  if  personally  present. 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  seal,  this 
Seventeenth  day  of  April,  One  Thousand  Nine  Hundred  and  Five. 

EDMUND  FITZGERALD.    (Seal) 

FORM  NO.  74— POWER  OF  ATTORNEY  TO  MAKE  APPLICATION 

FOR  PATENT  FOR  MINING  GROUND. 

KNOW  ALL  MEN  BY  THESE  PRESENTS:  That  we,  Albert  Stephens,  C. 
M.  Dent,  Dennis  Hoyt  and  Gilbert  Doyle,  do  hereby  constitute  and  ap- 
point Andrew  McTighe  as  our  attorney  in  fact  for  us  and  in  our  names, 
to  make  application  to  the  United  States  for  the  entry  and  purchase  of 
certain  Government  Lands,  in  the  Searchlight  Mining  District,  Reno 
County,  State  of  Nevada,  known  as  the  Gold  Coin  Group  No.  I  mining 
claim  and  premises ;  and  to  have  the  same  surveyed,  and  to  take  any  and 
all  steps  that  may  be  necessary  to  procure  from  the  Government  of  the 
United  States  a  patent  to  the  said  lands  and  premises,  granting  the  same 
to  us.  And  to  do  all  other  acts  appertaining  to  the  said  survey  and  entry 
as  aforesaid,  as  we  ourselves  could  do  by  our  own  acts,  in  our  own  proper 
persons. 

IN  WITNESS  WHEREOF,  we  have  hereunto  set  our  hands  and  affixed 
our  seals  the  21  st  day  of  July,  A.  D.  1905. 

C.  M.  DENT,  (Seal) 

DENNIS  HOYT,  (Seal) 

GILBERT  DOYLE,         (Seal) 
ALBERT  STEPHENS.     (Seal) 
(Acknowledgment.) 


168  HOW  TO  BUY  AND  SELL 

FORM    NO.    75— POWER   OF   ATTORNEY   TO   ACQUIRE    COAL 

LAND. 
COAL  LANDS. 

POWER   OF   ATTORNEY. 

KNOW  ALL  MEN  BY  THESE  PRESENTS,  That  I,  L.  D.  Benton,  of  the 
County  of  Archuleta,  State  of  Colorado,  having,  under  the  provisions  of 
the  Revised  Statutes  of  the  United  States  relating  to  the  sale  of  Coal' 
Lands,  made  application  to  purchase  the  N.  W.  l/4  of  the  S.  W.  y$  of 
Section  10,  in  Township  3  North  of  Range  21  West  of  the  Principal  Me- 
ridian, in  the  district  of  lands  subject  to  sale  at  the  Land  Office  at  Gunni- 
son,  Colo.,  do  hereby  constitute  and  appoint  Benjamin  Butler,  of  Denver, 
Arapahoe  County,  Colorado,  my  true  and  lawful  agent  and  attorney,  for 
me  in  my  name  and  stead,  and  for  my  'sole  use  and  benefit,  to  file  the 
same  with  the  Register  of  the  said  Land  office,  to  make  or  procure  to 
be  made  all  necessary  and  proper  affidavits  and  proofs,  at  any  time  re- 
quired, and  to  file  the  same  in  said  Land  Office,  to  make  payment  for  and 
entry  of  said  land  in  my  name,  to  do  all  and  singular  the  acts  and  things 
requisite,  lawful  and  proper  to  be  done  in  the  premises,  especially  to  make 
the  required  non-mineral  affidavit,  as  I  am  assured  and  believe  that  he  is 
well  acquainted  with  the  character  of  each  and  every  subdivision  of  said 
described  land ;  and  to  procure  for  me  from  the  United  States  the  receipt  and 
patent  for  said  lands ;  as  fully  and  completely  as  I  might  or  could  do,  with  full 
power  to  substitute  one  or  more  agents  O£  attorneys  for  the  purposes 
aforesaid,  and  to  revoke  any  such  appointment ;  hereby  ratifying  and  con- 
firming all  that  my  said  agent  and  attorney  or  his  substitute  may  lawfully 
do  in  the  premises. 

IN  WITNESS  WHEREOF,  I  have  'hereunto  set  my  hand  and  seal  this 
30th  day  of  January,  1905. 

L.  D.  BENTON. 
Signed  in  presence  of 

F.  S.  BELLAH. 
State  of  Colorado,  County  of  Archuleta,  ss. 

On  the  3Oth  day  of  January,  A.  D.  1905,  at  my  office  at  Pagosa 
Springs,  before  me,  W.  C.  Gould,  a  Notary  Public,  in  and  for  the  County 
and  State  aforesaid,  personally  appeared  L.  D.  Benton,  known  to  me  to 
be  the  same  person  whose  name  is  subscribed  to  the  foregoing  instrument, 
and  acknowledged  to  me  th;at  he  executed  the  same. 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  affixed  my 
official  seal,  the  day  and  year  in  this  certificate  first  above  written. 

My  Commission  expires  October  i,  A.  D.  1906. 
(Notarial  Seal)  W.  C.  GOULD, 

Notary  Public. 

FORM    NO.    76— TORRENS    LAND    ACT— NOTICE    OF    FILING 

PETITION. 

In  the   Superior   Court  of  the   County  of ,   State  of  California. 

No Department  No 

In  the  Matter  of  the  Application  of to  have 


REAL  ESTATE  AT  A  PROFIT  169 

land  brought  under  the  operation  of  "An  Act  for  the  certification  of  Land 

Titles,"  etc.,  approved  March  I7th,  1897. 

To and  to  Whom  it  May  Concern: 

Notice  is  hereby  given   that  on  the day  of 189..., 

a  verified  petition  to  the  above-named  Court  was  filed  with  the  County 
Clerk  of  said  County  by ,  the  owner  of  an  estate  or  in- 
terest in  and  to  the  land  hereinafter  described,  for  the  purpose  of  bringing 
said  land  under  the  operation  of  an  Act  entitled  "An  Act  for  the  certifi- 
cation of  land  titles  and  the  simplification  of  the  transfer  of  real  estate," 
approved  March  17,  1897,  and  that  a  hearing  upon  said  application  has 

been  fixed  by  the  said  Court  for  the day  of 189 ,  at 

the    hour    of o'clock M.,    at   the   court    room    of    Department 

of  said  Superior  Court  in  the  City  of County  of , 

State  of  California,  at  which  time  and  place  all  parties  interested  as 
shown  by  said  petition,  and  the  abstract  of  title  accompanying  said  peti- 
tion, may  appear  and  object  to  the  granting  of  the  application. 

And  you  are  further  notified  that  you  are  required  to  appear  and 
answer  said  petition  within  ten  days  from  the  date  of  the  service  of  this 
notice  upon  you,  if  served  within  this  County,  and  within  thirty  days 
from  date  of  such  service,  if  served  elsewhere;  and  upon  your  failure 
to  so  appear  and  answer,  your  default  will  be  entered  in  said  proceeding 
and  judgment  entered  against  you  as  prayed  for  in  said  petition.  The 
property  hereinbefore  referred  to  is  described  as  follows,  to- wit: 

(Description.) 

WITNESS  my  hand  and  the  seal  of  said  Superior  Court  this 

day  of 189... 


Clerk. 

By 

Deputy  Clerk. 

FORM  NO.  77— TORRENS  LAND  ACT— CERTIFICATE  OF  TITLE. 

No 

CERTIFICATE  OF  TITLE. 

Entered  in  Vol of  Register  of  Titles,  Folium  No 

in  the  office  of  the  Registrar  in  and  for  the  County  of State  of 

California. 

State  of  California,  County  of ,  ss. 

residing    in at    No 

Street,  State  of  California,  whose  occupation  is  that 

Married the  owner of  an  estate 

in  the  following  described  land: 

(Description.) 

Subject,    however,    to    the    estates,    easements,    liens,    incumbrances 
and  charges  hereunder  noted. 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  caused  my 


170  HOW  TO  BUY  AND 

official  seal  to  be  affixed  this day  of ,  189.  . .,  at 

o'clock  and..  .  minutes M.. 


Registrar  of  Titles  in  and  for  the 

Coun  ty  of State  of  California. 

MEMORIAL 

*NOTE  :  If  person  to  whom  issued  is  minor,  state  age ;  if  under  any 
other  disability,  the  nature  of  the  disability ;  if  executor  or  administrator, 
give  name  of  testator  or  inestate ;  if  assignee  in  insolvency,  give  name  of 
insolvent. 

FORM  NO.  78— LOCATION  NOTICE— LODE  OR  QUARTZ  CLAIMS, 
LOCATION  NOTICE. 

NOTICE  is  HEREBY  GIVEN,  that  the  undersigned,  in  compliance  with 
the  requirements  of  the  Revised  Statutes  of  the  United  States,  have  this 
day  located  and  claim  1500  linear  feet  along  the  course  of  this  lead, 
lode  or  vein  of  mineral-bearing  quartz,  and  600  feet  in  width  on  each 
side  of  the  middle  of  said  lead,  lode  or  vein,  together  with  all  mineral 
deposits  contained  therein,  and  all  the  timber  growing  within  the  limits 
of  said  claim,  and  all  water  and  water  privileges  thereon  or  appurtenant 
thereto,  situate  in  the  No  Name  Mining  District,  County  of  Los  Angeles, 
State  of  California,  and  more  particularly  described,  and  the  surface 
boundaries  thereof  marked  upon  the  ground,  as  follows,  to-wit : 

Beginning  at  this  monument  of  stone,  same  being  at  the  discovery 
shaft  (at  which  this  notice  is  posted),  being  in  the  center  of  the  westerly 
end  line  of  said  claim ;  thence  northerly  300  feet  to  a  monument  of  stone, 
same  being  the  northwest  corner  of  said  claim ;  thence  easterly  1500  feet 
to  a  monument  of  stone,  same  being  the  northeast  corner  of  said  claim ; 
thence  southerly  600  feet  to  a  monument  of  stone,  same  being  the  south- 
east corner  of  said  claim;  thence  westerly  1500  feet  to  a  monument  of 
stone,  same  being  the  southwest  corner  of  said  claim ;  thence  northerly 
300  feet  to  the  place  of  beginning. 

The  general  course  of  the  vein  or  lode  is  easterly  and  westerly, 
and  at  right  angles  therewith,  and  along  either  side  of  said  vein,  making 
parallel  end  lines  300  linear  feet  from  the  center  of  said  auartz  lode,  vein, 
ledge  or  deposit,  and  along  same,  including  all  its  dips2  variations,  spurs, 
angles  and  veins. 

This  claim  shall  be  known  as  the  North  Tunnel  Quartz  Mine,  and 
is  situate  at  the  head  of  Penn  Gulch,  in  the  Big  Dalton  Canon,  and  is  the 
northeast  extension  of  the  South  Tunnel  Mine. 

Located  this  I5th  day  of  February,  1905. 

The  date  of  discovery  and  of  the  posting  of  this  notice  is  February 
I5th,  1905. 

FRANK  SMITH,       ) 

ALEX.   BROWN,        )  Locators. 

JAMES  ROBINSON,  ) 


REAL  ESTATE  AT  A  PROFIT  171 

FORM  NO.  79— LOCATION  NOTICE  OF  PLACER  CLAIM. 
LOCATION   NOTICE. 

NOTICE  is  HEREBY  GIVEN,  that  the  undersigned,  in  compliance  with 
the  requirements  of  the  Revised  Statutes  of  the  United  States,  have  this 
day  located  the  following  described  petroleum  placer  mining  ground,  viz. : 

Commencing  at  the  southeast  corner  of  the  Deer  Lick  Claim,  the  same 
being  the  northeast  corner  of  the  claim  hereby  located,  and  being  witnessed 
by  a  post,  two  inches  square,  painted  white,  set  two  feet  in  the  ground, 
and  protruding  six  feet  above  the  ground,  and  to  which  this  notice  is  at- 
tached ;  thence,  running  in  a  westerly  direction,  along  the  southerly  bound- 
ary of  said  Deer  Lick  Claim,  eighty  (80)  rods,  more  or  less,  to  a  mound  of 
rocks  two  feet  high  and  being  the  northwest  corner  of  the  claim  hereby 
located;  thence  southerly  forty  (40)  rods,  more  or  less,  to  a  stake,  two 
inches  square,  nainted  white,  and  set  in  the  ground,  and  being  the  south- 
west corner  of  the  claim  hereby  located;  thence  easterly  eighty  (80)  rods, 
more  or  less,  to  a  mound  of  rocks,  two  feet  high,  set  in  the  bank  of  a  dry 
arroyo,  and  being  the  southeast  corner  of  the  claim  hereby  located ;  thence 
northerly  forty  (40)  rods,  more  or  less,  to  the  point  of  beginning,  and  con- 
taining 160  acres,  more  or  less,  the  same  being  situate  in  Sespe  Petroleum 
Mining  District,  County  of  Ventura,  State  of  California. 

This  claim  shall  be  known  as  the  Oil  Spouter  Placer  Mining  Claim. 

Located  the  2ist  day  of  March,  1905. 

John  Brown,  Dennis  Fogarty,  Peter  Smith,  Allen  Jones,  Dick  Robin- 
son, Albert  Davis,  Eben  Edmunds,  Abram  Cohn,  Locators. 

FORM  NO.  80— AFFIDAVIT  AS  TO  ANNUAL  ASSESS- 
MENT WORK. 

Affidavit  as  to  Assessment  Work  on  the  Oil  Spouter  Oil  Claim  in  the 
year  1906. 
State  of  California,  County  of  Ventura,  ss. 

John  Brown,  being  duly  sworn,  denoses  and  savs : 

That  the  Oil  Spouter  Oil  Claim,  situate  in  the  Sespe  Petroleum  Min- 
ing District,  County  of  Ventura,  State  of  California,  was  located  March 
2ist,  1905,  bv  Dennis  Fogarty,  Peter  Smith,  Allen  Jones,  Dick  Robinson, 
Albert  Davis,  Eben  Edmunds,  Abram  Cohn,  and  said  John  Brown,  and  the 
location  notice  thereof  was  recorded  March  23rd,  1905,  in  Book  4,  page  234, 
of  Mining  Claims,  in  the  office  of  the  County  Recorder  of  said  County  of 
Ventura ; 

That  said  locators  and  owners  caused  labor  and  improvements  to  be 
made  on  said  Claim  in  the  year  1906  to  the  value  of  at  least  One  Hundred 
Dollars;  that  such  labor  and  improvements  consisted  of  the  making  of  a 
road  on  said  claim  and  the  grading  of  a  site  for  an  oil  well  derrick  thereon, 
and  such  expenditure  was  made  by  said  owners  for  the  purpose  of  holding 
said  claim. 

JOHN  BROWN. 

Subscribed  and  sworn  to  before  me,  this  loth  day  of  December,  A.  D. 
1906. 

RICHARD  ROE, 
Notary  Public  in  and  for  the  County  of  Ventura,  State  of  California. 


172  HOW  TO  BUY  AND 

FORM   NO.   8o54— AFFIDAVIT   AND   NOTICE   OF   FAILURE   TO 

CONTRIBUTE. 

State  of  California,  County  of  Ventura,  ss. 

David  Houston,  being  first  duly  sworn,  deposes  and  says : 

That  that  certain  petroleum  mining  claim  known  as  and  called  "Sul- 
phur Spur  Oil  Claim,"  containing  eighty  acres,  more  or  less,  was  located 
by  Oliver  Olsen,  Neil  McTighe,  R.  L.  McCordell  and  the  said  David 
Houston,  on  the  3d  day  of  April,  1902,  the  lands  covered  by  said  claim 
being  described  as  follows,  to-wit:  The  North  l/2.  of  the  Northeast  *A 
of  Section  19,  Township  16  South,  Range  n  East,  in  the  County  of  Ven- 
tura, State  of  California,  and  that  the  notice  of  location  thereof  was  re- 
corded April  4,  1902,  in  the  office  of  the  County  Recorder  of  said  County 
of  Ventura,  in  Vol.  3  of  Miscellaneous  Records,  at  page  76; 

That  this  affiant,  in  the  year  1903,  caused  labor  to  be  performed  and 
improvements  to  be  made  on  said  claim  of  the  value  of  at  least  One  hun- 
dred dollars  ($100)  ; 

That  thereafter  this  affiant  served  upon  each  of  said  persons,  to-wit, 
R.  L.  McCordell,  Oliver  Olsen  and  Neil  McTighe,  a  notice  in  writing, 
in  the  form  and  to  the  effect  of  the  copy  of  notice  hereunto  annexed  and 
made  a  part  hereof,  and  that  he  served  said  notice  on  said  persons  on 
July  ist,  1904; 

That  more  than  ninety  days  have  expired  since  the  service  of  said 
notice  upon  the  said  R.  L.  McCordell,  Oliver  Olsen  and  Neil  McTighe, 
and  that  each  of  them  refused,  and  during  said  period  of  ninety  days  each 
of  them  has  continued  to  refuse,  to  contribute  to  said  affiant  his  respective 
proportionate  share  of  said  expenditure,  or  any  part  thereof. 

WHEREFORE,  this  affiant,  David  Houston,  claims  that  by  virtue  of 
the  premises,  and  of  Section  2324  of  the  Revised  Statutes  of  the  United 
States,  he  became  the  owner  of  the  interests  of  said  R.  L.  McCordell,  Oliver 
Olsen  and  Neil  McTighe,  of,  in  and  to  said  Sulphur  Spur  Oil  Claim. 

Dated  at  Ventura,  California,,  November  10,   1904. 

DAVID  HOUSTON.     (Seal) 

Subscribed  and  sworn  to  before  me,  this  loth  day  of  November, 
A.  D.  1904. 

(Notarial  Seal)  J.  B.  WILLIAMS, 

Notary  Public  in  and  for  the  County  of  Ventura,  State  of  California. 
(Copy  of  Notice.) 

VENTURA,  CALIFORNIA,  July  ist,  1904. 
To  R.  L.  McCordell  Oliver  Olsen  and  Neil  McTighe: 

You  are  hereby  notified  that,  Whereas,  on  the  4th  day  of  April, 
1902,  yourselves,  in  company  with  David  Houston,  located  under  the  laws 
of  the  United  States,  and  local  customs  laws  and  regulations,  80  acres  of 
placer  mining  ground  containing  petroleum,  situated  in  Ventura  County, 
State  of  California,  and  particularly  described  as  the  North  ^  of  the 
Northeast  %  of  Section  Nineteen,  Township  Sixteen,  South  of  Range 
Eleven,  East  M.  D.  B.  &  M.,  and  designated  said  claim  as  Sulphur  Spur 
Oil  Claim,  and  on  the  4th  day  of  April,  1902,  caused  the  notice  of  said 


REAL,  ESTATE  AT  A  PROFIT  173 

location  to  be  filed  and  recorded  in  the  office  of  the  County  Recorder  of 
said  County  of  Ventura,  in  Vol.  3  of  Miscellaneous  Records,  at  page  67; 
and, 

Whereas,  in  order  to  hold,  work  and  secure  patent  to  said  mining 
claim,  it  was  necessary  that  not  less  than  $100.00  in  labor  and  improve- 
ments should  be  expended  on  said  claim  in  the  improvement  and  develop- 
ment thereof  for  and  during  the  year  19x53,  and  a  failure  to  make  such 
expenditure  would  cause  said  claim  to  be  open  to  re-location  in  the  same 
manner  as  if  no  location  had  ever  been  made;  and, 

Whereas,  said  David  Houston,  in  the  month  of  December,  1903, 
caused  labor  to  be  performed  and  improvements  to  be  made  on  said  claim, 
to  the  value  of  $100.00,  for  the  year  1903,  as  will  appear  by  the  affidavit 
of  such  assessment  work  filed  in  the  office  of  the  County  Recorder  of  said 
County  of  Ventura,  and  recorded  therein  on  January  3d,  1904,  in  Vol.  3, 
Miscellaneous  Records,  at  page  198 : 

Now,  therefore,  you,  and  each  of  you,  are  hereby  notified  to  con- 
tribute your  proportionate  share  of  such  expenditures,  to-wit,  each  of 
you  the  sum  of  $25.00,  and  unless  you  each  pay  to  the  undersigned  the 
sum  of  Twenty-five  Dollars  within  Ninety  (90)  days  from  the  receipt 
of  this  notice,  the  interest  and  right  of  such  of  you  as  shall  fail  or  refuse 
to  contribute  your  proportionate  share  of  such  expenditures,  within  the 
time  specified  as  aforesaid,  shall  be  forfeited  and  become  the  property 
of  the  co-owners  as  shall  have  made  the  required  expenditures  and  con- 
tribution in  accordance  with  the  provisions  of  Section  2324  of  the  Re- 
vised Statutes  of  the  United  States. 

DAVID  HOUSTON.     (Seal) 

FORM  NO.  81— PETITION  TO  CITY  COUNCIL  FOR  PIPE  LINE 
RIGHT  OF  WAY. 

Los  ANGELES,  CALV  March  i,  1904. 
To  the  City  Council  of  the  City  of  Los  Angeles,  State  of  California: 

GENTLEMEN  : — Your  petitioner,  the  Starlight  Refining  Company,  a 
corporation,  respectfully  represents : 

That  your  petitioner  at  present  owns  and  operates  an  oil  pipe-line 
in  the  City  of  Los  Angeles,  and,  in  order  the  better  to  accommodate  its 
customers,  desires  the  privilege  and  license  of  laying,  operating  and  main- 
taining an  oil  pipe-line  not  more  than  six  inches  in  diameter  along  the 
following  streets  in  the  City  of  Los  Angeles,  namely:  Beginning,  etc. 

Your  petitioner  therefore  prays  that  your  Honorable  Body  grant 
your  petitioner  a  permit  to  lay,  operate  and  maintain  a  pipe-line,  not  more 
than  six  inches  in  diameter,  along  the  streets  hereinabove  designated, 
said  pipe-line  to  be  so  laid  and  operated  as  to  cause  no  obstruction  or 
detriment  to  the  full  and  proper  use  of  said  streets  by  the  public 

And  your  petitioner  will  ever  pray. 

(Corporate  Seal)  STARLIGHT  REFINING  COMPANY. 

By  L.  D.  NIDIVER,  Secretary. 


174  HOW  TO  BUY  AND  SELt 

FORM    NO.    82— PETITION    TO    ESTABLISH    COUNTY    ROAD, 
WITH  ACCOMPANYING  BOND. 

To  the  Honorable  Board  of  Supervisors  of  the  County  of  Ventura,  State 
of  California: 

GENTLEMEN  : — We,   the   undersigned,    freeholders   of Road 

District,  in  the  County  of  Ventura,  State  of  California,  taxable  in  said 
district  for  road  purposes,  respectfully  petition  your  Honorable  Body  to  lay 

out  and  establish  a  public  highway  in  said Road  District,  County  of 

Ventura,  State  of  California,  as  hereinafter  described ;  that  said  proposed 
road  is  situate  in Road  District,  County  of  Ventura,  State  of  Cali- 
fornia, and  the  general  route  of  said  road  is  as  follows,  viz : 

(Description. ) 

And1  said  proposed  road  runs  over  and  across  lands  belonging 
to 

Wherefore,  your  petitioners  pray  your  Honorable  Body  to  lay  out 
and  establish  said  proposed  road  as  heretofore  described. 

And  your  petitioners  will  ever  pray. 

(Signatures.) 

KNOW  ALL  MEN  BY  THESE  PRESENTS  :   That  we 

residents  and  freeholders  of  Ventura  County,  State  of  California,  are  held 
and  firmly  bound  unto  the  Board  of  Supervisors  of  said  county  in  the 

sum  of dollars,  gold  coin,   for  the  payment  of  which  sum,  well 

and  truly  to  be  made,  we  bind  ourselves,  our  heirs,  executors  and  adminis- 
trators, jointly  and  severally,  firmly  by  these  presents.  Sealed  with  our 
seals,  and  dated  this day  of A.  D.  189. . . 

THE   CONDITION    of   this   obligation   is    such    that,   whereas 

have  filed  or  are,  about  to  file  with  the  Clerk  of  the  Board  of  Supervisors 
of  Ventura  County  a  petition  praying  the  Honorable  Board  of  Supervisors 
of  Ventura  County,  to  lay  out  and  establish  a  public  road,  as  in  said  pe- 
tition described  and  particularly  set  forth,  and  which  is  hereby  made  a 
part  hereof. 

Now,  THEREFORE,  if  the  prayer  of  said  petition  is  not  granted  by 
said  Board  of  Supervisors  of  said  County,  we  will  pay  all  costs  of  viewing 
and  surveying  said  road;  but  on  the  other  hand,  if  the  prayer  of  said 
petition  is  granted  by  said  Board  of  Supervisors,  then  this  obligation  is 
to  be  void  and  of  no  effect,  otherwise  to  be  and  remain  in  full  force  and 
effect. 

(Seal) 

(Seal) 

(Justification  of  Sureties.) 

(For  Deed  to  County,  See  Form  No.  17.) 

FORM  NO.  83— PARTY  WALL  AGREEMENT. 

PARTY  WALL  AGREEMENT. 

THIS  AGREEMENT,  made  this  loth  day  of  April,  1905,  by  and  between 
Hiram  White,  hereinafter  described  as  the  party  of  the  first  part,  and 
William  Willard,  hereinafter  described  as  the  party  of  the  second  part, 


REAL  ESTATE  AT  A  PROFIT  175 

both  of  the  City  of  Los  Angeles,  County  of  Los  Angeles,  State  of  Cali- 
fornia, 

WITNESSETH  :  Whereas,  said  party  of  the  first  part  is  the  owner  of 
that  certain  real  property  situate  in  the  City  of  Los  Angeles,  County  of 
Los  Angeles,  State  of  California,  described  as  follows,  to-wit :  Lot  One 
(i),  Block  One  (i),  of  the  Hobbs  Tract,  as  per  map  of  said  tract  re- 
corded in  the  office  of  the  County  Recorder  of  the  County  of  Los  Angeles, 
in  Book  3,  of  Miscellaneous  Records,  at  page  325,  said  lot  fronting  on  the 
westerly  side  of  Spring  Street,  in  said  City :  and, 

WHEREAS,  said  party  of  the  second  part  is  the  owner  of  Lot  Two 
(2)  in  said  Hobbs  Tract,  said  Lot  Number  Two  (2)  fronting  on  the 
westerly  side  of  Spring  Street,  in  said  city,  and  lying  contiguous  to  said 
Lot  Number  One  (i),  on  the  northerly  side  thereof;  and, 

WHEREAS,  said  dividing  line  between  the  lots  aforesaid  is  one  hun- 
dred and  sixty-six  (166)  feet  in  length;  and, 

WHEREAS,  pursuant  to  a  memorandum  of  agreement  heretofore  ex- 
ecuted by  and  between  the  parties  hereto,  to-wit,  on  the  27th  day  of 
November,  1897,  and  recorded  in  the  office  of  the  County  Recorder  of 
Los  Angeles  County,  in  Book  676  of  Deeds,  at  Page  67,  a  party  wall  has 
been  constructed  and  is  now  in  use  between  the  parties  hereto,  said  party 
wall  extending  westerly  from  the  westerly  building  line  of  Spring  Street, 
for  a  distance  of  ninety  (90)  feet  on  said  dividing  line,  and  it  is  not  the 
intention  of  this  instrument  to  change  or  alter  the  rights  of  the  parties 
hereto  conferred  upon  them  by  said  memorandum  of  agreement,  except 
as  hereinafter  modified,  a  copy  of  said  memorandum  of  agreement  being 
hereto  annexed,  marked  "A"  and  made  a  part  hereof;  and, 

WHEREAS,  said  parties  desire  to  agree  as  to  the  continuation  of  a 
party  wall  along  the  boundary  line  between  their  said  respective  lots  as 
aforesaid ; 

Now,  THEREFORE,  in  consideration  of  the  mutual  advantages  to  each 
of  the  respective  parties  hereto  and  to  their  respective  lots  as  aforesaid, 
the  parties  hereto  hereby  mutually  covenant  and  agree,  each  with  th'e 
other,  as  follows,  to-wit : 

First:  Said  party  of  the  first  part  may  erect  a  party  wall  along 
that  portion  of  said  dividing  line,  commencing  at  a  point  about  ninety 
(90)  feet  westerly  from  the  westerly  building  line  of  Spring  Street  and 
extending  from  said  point  of  commencement  westerly  along  said  dividing 
line  sixty-five  feet,  more  or  less,  to  a  point  155  feet  from  said  westerly 
building  line  of  Spring  Street,  said  wall  to  be  of  corresponding  thickness 
with  the  wall  already  constructed,  as  mentioned  in  said  memorandum  of 
agreement,  upon  the  ninety  (90)  feet  therein  mentioned.  The  said  sixty- 
five  (65)  feet  of  additional  wall  shall  be  erected  of  the  height  hereinafter 
mentioned,  to-wit:  the  first  thirty-five  (35)  feet  shall  be  from  20  to  22 
feet  in  height  and  the  rear  thirty  (30)  feet  thereof  shall  be  of  such 
height  as  the  party  of  the  first  part  may  desire,  not  exceeding  eight  (8) 
stories  of  average  height. 

Second:     The  party  wall  to  be  erected  under  the  terms  of  this  agree- 


176  HOW  TO  BUY  AND  SEW* 

ment  shall  be  constructed  so  that  one-half  ($£)  the  width  or  thickness 
thereof  shall  be  situated  upon  said  property  of  said  party  of  the  first  part, 
and  one-half  (y2)  the  width  or  thickness  thereof  shall  be  situated  upon 
said  property  of  said  party  of  the  second  part,  to-wit,  one-half  (^)  of 
said  party  wall  shall  be  situated  upon  each  side  of  said  dividing  line.  It 
is  hereby  agreed  that  the  northerly  half  of  said  party  wall,  to-wit,  that 
portion  thereof  which  shall  be  situated  upon  the  property  of  said  party  of  the 
second  part,  and  being  the  portion  on  the  northerly  side  of  said  dividing 
line,  shall  be  the  property  of  said  party  of  the  second  part;  and  that  the 
southerly  one-half  (l/2)  of  said  party  wall,  to-wit,  that  portion  thereof 
which  shall  be  situated  upon  the  property  of  said  party  of  the  first  part, 
and  being  that  portion  on  the  southerly  side  of  said  dividing  line,  shall 
be  the  property  of  said  party  of  the  first  part;  but  that  said  wall  shall 
be  a  party  wall  for  the  mutual  benefit  of  the  respective  parties  hereto, 
and  their  successors  in  ownership  of  their  respective  lots,  their  executors, 
administrators,  heirs  and  assigns,  forever. 

Third:  The  said  memorandum  of  agreement  between  the  parties 
hereto  relating  to  the  construction  of  the  aforesaid  ninety  (90)  feet  of 
said  party  wall,  is  hereby  modified,  as  follows,  to-wit:  That  portion  of 
said  90  feet  of  said  party  wall  commencing  at  the  westerly  building  line 
of  Spring  Street  and  extending  westerly  a  distance  of  thirty  (30)  feet, 
may  be  increased  in  height  by  said  party  of  the  first  part  to  such  height 
as  he  may  desire,  not  exceeding  eight  stories  of  average  height. 

Fourth:  It  is  further  agreed  that  said  party  of  the  first  part,  in 
constructing  his  building  above  the  first  story  thereof,  shall  set  back  the 
northerly  wall  thereof  a  distance  of  five  (5)  feet  in  the  clear  from  the  said 
party  wall  between  the  following  points,  to-wit:  commencing  at  a  point 
90  feet  from  the  westerly  building  line  of  Spring  Street  and  running  back 
westerly  a  distance  of  35  feet ;  and  said  party  of  the  second  part,  in  con- 
structing his  building  on  the  northerly  side  of  said  party  wall,  shall  set 
back  his  southerly  wall  a  distance  of  two  (2)  feet  in  the  clear  from  the 
said  party  wall  between  the  same  points,  so  as  to  leave  a  light  well  be- 
tween said  points  of  at  least  seven  (7)  feet  in  width  above  the  first 
story. 

Fifth:  That  portion  of  said  party  wall  already  constructed,  extend- 
ing from  the  point  30  feet  from  the  westerly  building  line  of  Spring  Street 
to  a  point  distant  90  feet  from  said  westerly  building  line  of  said  Spring 
Street,  shall  not  be  extended  above  three  stories  in  height;  and  it  is 
agreed  that  said  party  of  the  first  part,  in  constructing  his  building  above 
the  first  story  thereof,  shall  set  back  the  northerly  wall  thereof  between 
the  points  last  aforesaid,  a  distance  of  five  (5)  feet  in  the  clear  from  said 
party  wall.  And  in  case  said  party  of  the  second  part  should  at  any 
time  increase  the  height  of  his  building  on  the  northerly  side  of  said 
party  wall  above  three  stories,  he  shall  set  back  the  southerly  wall  thereof 
between  the  points  last  aforesaid  above  the  third  story,  a  distance  or  two 
(2)  feet  in  the  clear  from  said  party  wall,  so  as  to  leave  a  light  well  be- 
tween said  points  of  at  least  seven  (7)  feet  in  width  above  the  third 
story. 


REAL,  ESTATE  AT  A  PROFIT  177 

Sixth:  The  spaces  mentioned  in  the  last  two  clauses  of  this  agree- 
ment, as  to  be  left  for  a  light  well,  shall  forever  be  maintained  and  kept 
by  the  parties  hereto  free  from  any  buildings  or  obstructions. 

Seventh:  It  is  hereby  agreed  that  neither  the  said  party  of  the 
second  part,  nor  his  successors,  executors,  administrators,  heirs  or  assigns, 
shall  be  entitled  to  use  said  party  wall,  to  be  constructed  by  the  party  of 
the  first  part,  as  herein  mentioned,  until  said  party  of  the  second  part, 
or  his  said  executors,  administrators,  heirs  or  assigns,  shall  first  pay  to 
said  party  of  the  first  part,  his  successors,  executors,  administrators,  heirs 
or  assigns,  one-half  (^)  of  such  amount  as  would  be  the  reasonable  cost 
of  constructing  said  wall  at  the  time  at  which  such  use  shall  be  com- 
menced. It  is  agreed  that  the  party  of  the  first  oart  shall,  in  the  first 
instance,  pay  the  entire  cost  of  constructing  said  party  wall  so  to  be  con- 
structed by  him,  as  herein  mentioned,  and  that  said  party  of  the  second 
part,  his  successors,  executors,  administrators,  heirs  or  assigns,  shall  not 
be  required  to  pay  any  portion  of  the  cost  of  such  construction  until  such 
time  as  said  party  of  the  second  part,  his  successors,  executors,  adminis- 
trators, heirs  or  assigns  desire  to  make  use  of  said  wall;  and  that  said 
party  of  the  second  part,  his  successors,  executors,  administrators,  heirs 
or  assigns,  shall,  before  using  said  wall,  pay  to  said  party  of  the  first 
part,  his  successors,  executors,  administrators,  heirs  or  assigns,  one-half 
(34)  of  such  sum  as  would  constitute  the  reasonable  cost  of  the  con- 
struction of  said  wall  at  the  time  at  which  such  use  shall  begin. 

Eighth:  It  is  agreed  that  all  extensions  and  constructions  hereunder 
shall  be  made  of  first-class  materials,  and  in  compliance  with  the  ordi- 
nances of  the  City  of  Los  Angeles  in  force  at  the  time  of  such  extensions 
or  constructions. 

Ninth:  It  is  understood  and  agreed  that  all  of  the  covenants  hereof 
are  made  as  and  for  covenants  running  with  the  lands  of  the  respective 
parties  hereto,  hereinbefore  described,  and  shall  bind  the  parties  hereto 
and  their  respective  successors  in  the  ownership  of  said  respective  lots, 
and  their  respective  executors,  administrators,  heirs  or  assigns. 

IN  WITNESS  WHEREOF,  the  parties  hereto  have  hereunto  set  their 
hands  and  seals  the  day  and  year  first  above  written. 

HIRAM  WHITE.  (Seal) 

WILLIAM   WILLARD.        (Seal) 
(Acknowledgment. ) 
(Copy  of  Agreement  "A.") 

FORM  NO.  84— PIPE  LINE  RIGHT  OF  WAY. 
THIS  INSTRUMENT  WITNESSETH  :  That  Ventura  Improvement  Com- 
pany, a  corporation,  organized  and  existing  under  the  laws  of  the  State 
of  California,  and  having  its  principal  place  of  business  at  the  Town  of 
Ventura,  State  of  California,  in  consideration  of  Ten  Dollars,  the  receipt 
whereof  is  hereby  acknowledged,  hereby  grants  to  Blue  Bird  Oil  Company, 
a  corporation,  having  its  principal  place  of  business  at  Santa  Paula, 
Ventura  County,  California,  and  to  its  successors  and  assigns,  the  right, 
privilege  and  easement  to  lay,  build,  operate  and  maintain  a  pipe-line  for 


178  HOW  TO  BUY  AND 

the  conveying  of  petroleum  oil,  water  and  other  liquid  substances,  in, 
upon,  over  and  across  that  certain  tract  of  land,  situate  in  the  County  of 
Ventura,  State  of  California,  and  particularly  described  as  follows: 

(Description.) 

Said  pipe  line  to  extend  across  said  nremises  at,  and  to  be  laid  as 
nearly  as  possible  to,  the  fence  running  along  the  northern  boundary  line 
of  the  right  of  way  of  the  Southern  Pacific  Company,  for  a  distance  of 
about  eighty  (80)  chains,  more  or  less;  said  grant  being  subject,  never- 
theless, to  the  following  covenants  and  conditions,  on  the  part  of  said 
Blue  Bird  Company,  its  successors  and  assigns,  to  be  kept  and  performed, 
namely : 

First:  That  said  Blue  Bird  Oil  Company  shall,  at  its  own  cost  and 
expense,  lay,  operate  and  maintain  said  pipe  line,  and  that  all  of  said  pipe 
line  shall  be  buried  not  less  than  eighteen  inches  below  the  surface  of  the 
ground; 

Second:  That  said  Blue  Bird  Oil  Company  shall  be  responsible 
for,  and  shall  pay  to  the  parties  entitled  thereto,  any  damage  that  may 
be  caused  or  result  from  the  laying  and  operating  of  said  pipe-line  or 
by  leakage  thereof;  said  Ventura  Improvement  Company  reserving  to 
itself  the  right  to  be  the  sole  judge  as  to  any  damage  that  may  occur  by 
reason  of  the  location  of  said  line  of  pipe  on  its  premises  and  the  man- 
ner of  maintaining  it;  provided,  however,  that  the  damage  so  estimated 
shall  always  be  reasonable  and  just  and  commensurate  to  the  injury 
suffered ; 

Third :  That  said  Blue  Bird  Oil  Company,  its  successors  or  assigns, 
may,  at  any  time,  remove  said  pipe-line  from  said  premises,  and  upon 
such  removal,  shall  fill  up  the  trench  wherein  said  pipe-line  lay,  and  leave 
the  surface  of  the  ground  in  good  condition;  provided,  however,  that  if, 
after  any  such  removal,  said  Blue  Bird  Oil  Company,  its  successors  or  as- 
signs, shall  not  make  use  of  the  right  of  way  herein  granted  for  the  space 
of  six  successive  months,  the  rights  hereby  granted  shall  be  forfeited 
and  cease; 

Fourth :  That  the  exercising,  by  the  Blue  Bird  Oil  Company,  of 
the  rights  hereby  granted,  shall  be  conclusive  proof  of  the  entering  into 
of  the  covenants  herein  contained  on  its  part  to  be  kept  and  performed 
equally  as  though  these  presents  were  signed  and  sealed  by  said  Blue 
Bird  Oil  Company. 

IN  WITNESS  WHEREOF,  said  Ventura  Improvement  Company  has 
hereunto  caused  its  corporate  name  and  seal  to  be  affixed  by  its  President 
and  its  Secretary,  this  ninth  (9th)  day  of  September,  A.  D.  1905. 

(Corporate  Seal)  VENTURA  IMPROVEMENT  COMPANY. 

By  its  President  DWIGHT  HILLIS. 
By  its  Secretary  ABNER  ANDREWS. 
(Corporate  Acknowledgment.) 


REAL  ESTATE  AT  A  PROFIT  179 

FORM  NO.  85— OLOGRAPHIC  WILL  UNDER  CALIFORNIA  LAW. 

LAST  WILL  AND  TESTAMENT  OF  DOUGLASS  JERROLD. 

I,  Douglass  Jerrold,  do  make,  publish  and  declare  this  to  be  my  last 
will  and  testament. 

I  give,  devise  and  bequeath  to  my  beloved  wife,  Mary  Jane  Jerrold, 
all  of  my  property,  real,  personal  and  mixed,  of  which  I  shall  be  pos* 
sessed,  and  to  which  I  shall  be  entitled,  at  the  time  of  my  death. 

I  hereby  appoint  my  beloved  wife,  Mary  Jane  Jerrold,  the  sole 
executrix  of  this  my  last  will  and  testament,  and  do  request  that  as 
such  executrix  she  be  exempt  from  giving  bond. 

IN  WITNESS  WHEREOF,  I  have  written,  dated  and  signed  this  will 
entirely  in  my  own  handwriting,  this  first  day  of  December,  A.  D.  1905. 

DOUGLASS  JERROLD.  (Seal) 

FORM  NO.  86— WRITTEN  AND  WITNESSED  WILL. 

LAST  WILL  AND  TESTAMENT  OF 

I,  of ,  in  the  County  of and  State  of 

,  being  of  sound  mind  and  memory,  do  make,  publish,  and  de- 
clare this  to  be  my  last  will  and  testament,  hereby  revoking  all  former 
wills  by  me  at  any  time  made. 

My  will  is,  that  all  my  just  debts  and  funeral  expenses  shall,  by 
my  executors  hereinafter  named,  be  paid  out  of  my  estate,  as  soon  after 
my  decease  as  shall  by  them  be  found  convenient. 

I  give,  devise,  and  bequeath  to  my  beloved  wife, ,  all  my  house- 
hold furniture,  and  also dollars  in  money,  to  be  paid  to  her  by 

my  executors,  hereinafter  named,  within months  after  my  de- 
cease ;  to  have  and  to  hold  the  same  to  her  and  her  executors,  adminis- 
trators, and  assigns  forever.  I  also  give  to  her  the  use  and  income  of  my 
dwelling  house,  land,  and  its  appurtenances,  situated  in (describ- 
ing the  same),  to  have  and  to  hold  the  same  to  her  for  and  during  the 
term  of  her  natural  life. 

I  give,  devise,  and  bequeath  to  my  son,  ,  the  reversion  or 

remainder  of  my  dwelling  house  and  its  appurtenances,  situate  in 

aforesaid  (describing  it),  and  all  profits,  income,  and  advantage  that  may 

result  therefrom,  from  and  after  the  decease  of  my  beloved  wife, ; 

to  have  and  to  hold  the  same  to  him,  the  said ,  his  heirs  and  as- 
signs, from  and  after  the  decease  of  my  said  wife,  to  his  and  their  use 
and  behoof  forever. 

All  the  rest  and  residue  of  my  estate,  real,  personal,  and  mixed,  of 
which  I  shall  die  seized  and  possessed,  or  to  which  I  shall  be  entitled  at 

my  deceasej  I  give,  devise,  and  bequeath,  to  my  sons and 

to  be  equally  divided  between  them,  share  and  share  alike. 

And,  lastly,  I  do  nominate  and  appoint  my  said  sons and 

to  be  the  executors  of  this  my  last  will  and  testament. 

IN  WITNESS  WHEREOF,  I.  the  said ,  have  to  this,  my  last 

will  and  testament,  consisting  of sheets  of  paper,  subscribed  my 


180  HOW   TO   BUY   AND 

name  and  affixed  my  seal  this day  of ,  in  the  year  of  our 

Lord  one  thousand  nine  hundred  and 

(Seal) 

Signed  and  sealed  in  our  presence  by  the  testator,  and  acknowledged 
by  him  to  each  of  us,  and  he  at  the  same  time  declared  the  foregoing 
instrument,  so  signed,  to  be  his  last  will  and'  testament,  and  thereupon 
we,  at  the  request  of  the  testator,  and  in  his  presence,  and  in  the  presence 
of  each  other,  signed  our  names  as  witnesses  thereto,  together  with  our 
places  of  residence. 

(Signatures  of  Witnesses.) 

.  .  residing  at Street. 

residing  at Street. 


REAL  ESTATE  AT  A  PROFIT  181 

CHAPTER  X. 

SUBDIVISIONS. 

Sales  of  Subdivisions  are  Remunerative  Transactions — Outlines  of  the  Several 
Methods  of  Handling  Tracts — Making,  Filing,  Accepting,  Endorsing  and  Recording 
Map — -Gain  on  Lots  in  New  Subdivisions  Generally  Small. 

Sec.  134.  Buying  acreage  property  within  a  city,  or  con- 
tiguous to  or  adjacent  to  the  city  limits,  and  subdividing  and 
selling  the  same  as  lots,  is  one  of  the  most  remunerative  of  real 
estate  transactions.  This  is  done  in  one  of  three  or  more  ways, 
to  wit :  (a)  by  buying  the  acreage  outright,  and  then  subdivid- 
ing and  improving  it,  which  requires  the  investment  of  consid- 
erable capital  at  the  outset;  (b)  by  paying  a  portion  of  the 
purchase  price  in  cash,  and  having  the  property  conveyed  in 
trust  to  a  trustee — preferably  a  title  company — and  applying 
a  portion  of  the  purchase  price  of  each  lot,  as  sold,  to  the  ex- 
tinguishment of  the  debt  on  the  property  as  indicated  in  Form 
No.  88:  or  (c)  by  being  appointed  exclusive  agent  for 
the  subdivision  and  sale  of  the  property,  as  indicated  in 
Form  No.  87.  Both  of  the  above  mentioned  forms  are  largely 
self-explanatory.  Subdivisions  are  also  handled  exclusively 
by  an  agent  on  a  commission  basis,  the  commission 
being  large  enough  to  enable  other  agents  to  partici- 
pate therein. 

Sec.  135.  Lots  in  subdivisions  are  sold  in  two  ways, 
namely:  (a)  by  a  contract  of  sale,  whereby  the  purchaser 
makes  a  part  payment  in  cash,  and  agrees  to  pay  the  re- 
mainder at  certain  specified  times,  together  with  interest  and 
taxes,  he  to  receive  a  deed  upon  full  compliance  with  the  terms 
of  the  contract ;  or  (b)  by  the  purchaser  paying  a  portion  in 
cash,  and  receiving  a  deed  to  the  premises,  and  thereupon  giv- 
ing to  the  seller  a  note  or  notes,  secured  by  a  mortgage  on  the 
lots,  for  the  unpaid  portion  of  the  purchase  price. 

Sec.  136.  The  person  subdividing  is  required  to  have  a 
map  made  of  the  premises,  showing  the  lots  and  streets,  with 
dimensions  and  distances,  and  such  map  must  be  filed  with, 
and  accepted  and  endorsed  by,  some  designated  city  or  county 
official  or  officials,  such  as  the  city  engineer,  or  County  Board 
of  Supervisors.  No  map  will  be  considered,  accepted  or  en- 
dorsed, unless  the  lines  of  the  streets  and  highways  shown 


182  HOW    TO    BUY    AND    SEIJ< 

thereon  are  a  continuation  of  the  lines  of  streets  and  highways 
of  adjacent  subdivisions,  and  the  connections  of  such  lines 
must  be  plainly  shown  on  the  face  of  the  map.  The  areas  of 
lots  as  shown  on  the  map  must  not  include  any  portion  used 
or  offered  for  dedication  to  the  public  as  streets  or  highways, 
and  all  distances  and  courses  along  the  side  lines,  and  across 
highways  must  be  plainly  written  on  the  face  of  the  map. 
Where  these  or  similar  rules  have  not  been  observed  in  times 
past,  there  are,  in  the  streets  and  highways,  jogs,  set-offs  and 
cul-de-sacs,  annoying  and  bewildering  alike  to  citizens  and 
strangers.  The  map,  after  being  accepted  and  endorsed,  is 
filed  for  record  in  the  office  of  the  County  Recorder. 

Sec.  137.  The  grades,  curbs  and  sidewalks  of  streets 
within  the  limits  of  a  city  must  be  made  in  accordance  with 
plans,  profiles  and  cross-sections  prepared  by  the  city  engi- 
neer. In  Los  Angeles,  curbs  are  to  be  constructed  of  cement 
concrete.  Curbs  are  to  be  six  inches  wide  on  top,  twelve  inches 
wide  on  the  bottom  and  eighteen  inches  deep.  Sidewalks  are 
to  be  three  and  one-half  inches  thick.  No  more  than  one  street 
can  be  closed  at  one  time  while  street  work  is  in  progress. 

Sec.  138.  From  the  standpoint  of  the  investor,  the  buy- 
ing of  a  lot  in  a  comparatively  close-in  subdivision,  where 
building  restrictions  are  reasonable,  for  the  purpose  of  erect- 
ing a  residence  thereon,  is  proper,  provided  the  tract  is  being 
generally  improved  by  similar  residences,  and  the  investor  pre- 
fers to  live  amid  semi-suburban  surroundings.  There  are  dis- 
comforts incident  to  residing  in  new  tracts  which  do  not  at- 
tach to  the  older  residence  portions  of  a  city. 

Sec.  139.  If  the  investor  buys  in  .a  new  tract  by  way  of 
speculation,  and  makes  a  small  cash  payment,  with  the  ex- 
pectation of  selling  at  an  advance  before  the  next  payment  be- 
comes due,  he  is  apt  to  be  disappointed,  as  there  are  usually 
too  many  such  lots,  and  a  number  of  other  persons  may  be 
pursuing  precisely  the  same  plan,  and  consequently,  there  are 
likely  to  be  more  sellers  than  buyers.  Surrounding  "boom" 
towns,  there  is  acreage  which  has  been  sold  as  town  lots  and 
has  again  reverted  to  acreage ;  and  it  not  infrequently  happens, 
within  the  limits  of  a  city,  that  one  may  buy  lots  in  a  tract, 
a  few  years  after  the  tract  has  been  placed  on  the  market, 
cheaper  than  when  such  lots  were  first  offered.  The  possible 
immediate  gain  on  lots  in  new  subdivisions  is  generally  small. 


REAL  ESTATE  AT  A  PROFIT  183 

FORM    NO.    87— CONTRACT    APPOINTING    AGENTS    TO    SUB- 
DIVIDE AND  SELL  PROPERTY. 

THIS  AGREEMENT,  made  and  entered  into,  in  duplicate,  this  Tenth 
day  of  March,  Nineteen  Hundred  and  Five,  by  and  between  S.  A.  Belcher 
and  Sarah  Belcher,  his  wife,  of  the  City  of  Los  Angeles,  County  of  Los 
Angeles,  State  of  California,  the  parties  of  the  first  part,  and  James  R. 
Black  and  George  L.  White,  of  the  County  and  State  aforesaid,  the  parties 
of  the  second  part, 

WITNESSETH  :  That  for  and  in  consideration  of  the  covenants  and 
agreements  hereinafter  set  forth,  and  the  reservation  of  one  inside  lot 
on  Thirty-ninth  street  in  the  lands  hereinafter  mentioned,  the  said  parties 
of  the  first  part  have  appointed  and  do  hereby  appoint  the  said  James  R. 
Black  and  George  L.  White  the  sole  and  exclusive  agents  of  said  parties 
of  the  first  part  to  subdivide  and  sell  in  subdivisions,  in  accordance  with 
their  judgment,  provided  that  in  the  exercise  of  their  judgment  they  shall 
act  for  the  best  interests  of  all  parties  concerned,  the  following  described 
property,  to-wit : 

The  East  One-half  (^)  of  the  Southwest  One-quarter  (%)  of  Sec- 
tion One  (i)  in  Township  Two  (2)  South  of  Range  Fourteen  (14)  West, 
San  Bernardino  Meridian,  in  the  City  of  Los  Angeles,  State  of  California. 

It  is  agreed  between  the  parties  hereto  that  said  land  shall  be  sold 
for  such  price  or  prices  as  shall  net  the  parties  of  the  first  part  the  sum 
of  Eleven  Thousand  Dollars  ($11,000),  lawful  money  of  the  United  States 
of  America,  without  interest,  except  as  hereinafter  set  forth  and  inde- 
pendent of  the  lot  reserved  to  said  parties  of  the  first  part  as  hereinabove 
mentioned. 

It  is  further  agreed  by  and  between  the  parties  hereto  that  the  sale 
of  all  subdivisions  shall  be  made  upon  the  following  terms  and  conditions, 
to-wit :  At  least  one-third  cash  in  lawful  money  of  the  United  States  as 
aforesaid,  One-third  on  or  before  one  year  from  the  date  of  sale,  and  the 
remaining  one-third  on  or  before  two  years  from  date  of  sale. 

It  is  further  agreed  between  the  parties  hereto  that  all  deeds  convey- 
ing subdivisions  of  the  above  described  property  shall  be  in  the  form  of  a 
grant  bargain  and  sale,  or  in  form  prescribed  by  the  Civil  Code  of  the 
State  of  California,  and  that  each  such  sale  shall  be  made  subject  to  the 
following  conditions,  and  the  said  deeds  to  be  made  pursuant  to  this  con- 
tract shall  contain  the  following  clauses,  namely: 

"Provided,  however,  that  this  conveyance  is  made  and  accepted  upon 
each  of  the  following  conditions  which  shall  apply  to  and  be  binding  upon 

the  grantee heirs,  devisees,  executors,  administrators  and  assigns, 

namely:  That  said  premises  shall  be  used  for  residence  purposes  only; 
that  no  residence  shall  be  erected,  placed  or  permitted  on  said  premises 
that  shall  cost  or  be  fairly  worth  less  than  one  thousand  dollars  ($1,000)  ; 
that  said  residence  and  all  portions  and  projections  thereof  shall  be  located 

not  less  than feet  from  the  front  line  and feet  from  the 

side  lines  of  said  premises  and  shall  face  the  front  line  of  said  premises^ 
namely,  on ;  that  no  barn,  no  store  building, 


184  HOW   TO   BUY   AND    SEW, 

shop  or  place  for  the  sale  of  merchandise   of  any   description   shall  be 
erected,  placed  or  permitted  on  said  premises. 

"Provided,  further,  the  party  of  the  second  part heirs  and 

assigns,  shall  not  convey,  lease,  or  rent  said  premises  or  any  part  thereof 
to  any  person  of  African  descent. 

"Provided,  that  upon  the  breach  of  any  of  the  foregoing  conditions 

the  said  premises  shall  revert  to  the  said  grantor ,  successors  or 

assigns,  each  of  whom  shall  have  the  right  of  immediate  re-entry  upon  said 
premises." 

And  that  such  deeds  are  to  be  delivered  to  the  purchaser  upon  the  receipt 
of  the  first  payment,  and  of  promissory  notes  and  mortgages  evidencing 
and  securing  the  second  and  third  payments;  that  all  notes  shall  be  pay- 
able to  the  parties  of  the  first  part,  and  that  the  parties  of  the  first  part 
shall  have  the  notes  secured  by  a  first  mortgage  on  the  property  sold  and 
to  which  said  mortgages  relate,  and  that  such  mortgages  shall  be  in  the 
form  in  use  by  the  Title  Insurance  and  Trust  Company,  or  the  Title 
Guarantee  and  Trust  Company,  both  of  the  said  City  of  Los  Angeles ;  that 
said  notes  shall  bear  interest  at  the  rate  of  nine  (9)  per  cent  per  annum, 
payable  semi-annually,  and  that  the  parties  of  the  first  part  shall  execute 
and  deliver  to  the  purchaser  a  tax  agreement,  in  the  form  in  use  by  the 
Trust  Companies  aforesaid,  providing  in  effect  that  if  the  purchaser  shall 
pay  all  taxes  upon  the  lands  so  purchased  by  him,  the  parties  of  the  first 
part  shall  account  for  all  interest  upon  said  promissory  notes  in  excess 
of  six  (6)  per  cent,  per  annum. 

It  is  further  agreed  between  the  parties  hereto  that  upon  the  making 
of  each  and  every  sale,  and  prior  to  the  execution  of  any  deed  therefor, 
the  said  parties  of  the  second  part  shall  render  to  and  for  the  information 
of  said  parties  of  the  first  part,  a  statement  in  writing  of  the  transaction, 
showing  in  detail  the  property  sold,  the  price  to  be  paid  therefor,  and  the 
amount  of  cash  received  and  the  amounts  and  terms  of  the  deferred  pay- 
ments; and  that  70%  of  the  cash  received  on  all  sales  shall  be  given  to 
said  parties  of  the  first  part  immediately  after  the  consummation  of  the 
sale  and  the  remaining  30%  shall  be  retained  by  the  parties  of  the  second 
part  for  their  own  use  and  benefit. 

It  is  further  agreed  between  the  parties  hereto  that  the  parties  of  the 
second  part  shall  keep  all  their  transactions  relating  to  the  property  herein- 
above  described,  and  their  accounts  with  the  narties  of  the  first  part,  in  a 
book  separate  from  all  transactions  of  the  parties  of  the  second  part  in 
relation  to  other  business  matters,  and  that  such  book  shall  at  all  times 
be  open  to  the  inspection  of  said  parties  of  the  first  part,  their  agents  and 
attorneys. 

It  is  further  agreed  between  the  parties  hereto  that  said  parties  of 
the  first  part  shall  pay  for  bringing  down  to  date  an  unlimited  certificate 
oif  title  in  respect  to  said  premises,  such  certificate  to  be  issued  by  the 
Title  Insurance  and  Trust  Company  of  Los  Angeles  at  the  request  of  said 
parties  of  the  second  part,  and  that  the  said  parties  of  the  second  part 
shall  pav  for  each  separate  certificate  of  title,  or  policy  of  title  insurance, 


REAI,  ESTATE  AT  A  PROFIT  185 

als  the  lots  are  sold,  such  certificates  or  policies  of  title  insurance  to  be 
delivered  to  the  parties  of  the  first  part  with  the  promissory  notes  and 
mortgages  aforesaid. 

It  is  further  agreed  between  the  parties  hereto  that  the  parties  of  the 
second  part  shall  at  once  and  as  continuously  as  practicable  and  without 
delay,  survey  and  subdivide  all  of  the  land  herein  mentioned,  and  lay  out 
at  least  one  street,  and  grade,  sidewalk  and  curb  the  same,  and  furnis'h 
therefor  all  necessary  labor  and  materials  at  their  own  cost  and  expense 
and  pay  for  all  work  and  materials  done  and  provided  upon  and  for  the 
above  described  premises ;  provided,  nevertheless,  that  every  lot  shall  front 
on  a  street  that  has  been  graded,  sidewalked  and  curbed. 

It  is  further  agreed  between  the  parties  hereto  that  all  mortgages 
given  as  aforesaid  to  said  parties  of  the  first  part  shall  be  recorded  without 
delav  in  the  office  of  the  County  Recorder  of  the  County  of  Los  Angeles, 
in  the  proper  records  in  said  office,  at  the  cost  and  expense  of  said  parties 
of  the  second  part,  and  that  the  said  parties  of  the  second  part  shall  pay 
to  all  outside  real  estate  dealers  or  brokers  for  sales  made  by  them  of  lots 
in  the  premises  above  described,  a  commission  at  the  rate  of  five  (5)  per 
cent,  on  the  first  $1,000,  and  2^/2%  on  amounts  in  excess  thereof,  and  shall 
also  pay  all  taxes  and  assessments  which  may  be  levied  on  said  premises 
during  the  term  of  this  agreement  for  State,  County  and  municipal  pur- 
poses, excepting  for  the  present  fiscal  year  1904-5,  which  last  named  taxes 
the  said  parties  of  the  first  part  agree  to  pay. 

It  is  further  agreed  between  the  parties  hereto  that  the  parties  of 
the  second  part  shall  hold  said  property  and  the  said  parties  of  the  first 
part  harmless  from  all  liens  for  all  work,  labor  and  materials,  or  any  of 
them,  done  or  furnished  upon  the  property  above  described,  and  pay  all 
liens  which  may  attach  thereto  when  due;  provided,  that  in  the  event  the 
amount  of,  or  the  validity  of,  any  lien  is  disputed  by  the  parties  of  the 
second  part,  they  shall,  at  their  own  cost  and  expense,  contest  the  same, 
paying  all  costs  and  expenses  connected  therewith,  including  attorney's 
fees,  and  shall  not  be  obliged  to  pay  such  disputed  lien  until  the  same  has 
been  finally  adjudged  a  lien  against  said  land  or  a  claim  against  the 
parties  of  the  first  part,  or  against  the  parties  of  the  second  part,  either 
by  operation  of  law  or  otherwise,  and  that  in  the  event  a  lien  is  in  pro- 
cess of  litigation  at  the  expiration  of  the  term  hereinafter  mentioned,  the 
parties  of  the  second  part  agree  to  continue  their  obligation  to  pay  the 
same. 

It  is  further  agreed  between  the  parties  hereto,  that  the  party  of  the 
second  part  will  pay  for  all  labor  and  materials  supplied  on  the  premises 
above  described,  though  such  materials  are  not  herein  specifically  set 
forth,  and  that  all  street  and  sidewalk  work  shall  conform  to  the  rules  and 
regulations  of  the  Board  of  Supervisors  of  the  County  of  Los  Angeles, 
and  shall  be  subject  to  the  approval  of  the  Superintendent  of  Streets  of 
said  City  of  Los  Angeles. 

It  is  further  agreed  between  the  parties  hereto  that  in  the  event  the 
said  parties  of  the  first  part  shall  sell  any  of  the  subdivisions  or  lots 


186  HOW  TO  BUY  AND 

comprising  the  premises  above  described,  they  shall  be  entitled  to  the  reg- 
ular commission  of  5%  on  the  first  $1,000,  and  at  the  rate  of  2^%  on  all 
amounts  in  excess  of  said  sum  of  $1,000,  such  commission  to  be  allowed 
them  upon  consummation  of  sale. 

It  is  further  agreed  between  the  parties  hereto  that  the  parties  of  the 
first  part  shall  be  entitled  to  receive  and  retain,  for  their,  own  use  and 
benefit,  all  interest  accruing  on  the  notes  and  mortgages  made  in  their; 
favor  as  a  part  of  the  purchase  price  of  said  subdivisions  or  lots,  and  such 
interest  shall  not  be  taken  to  be,  or  deemed  as,  a  part  of  the  aforesaid  sum 
of  Eleven  Thousand  Dollars  ($11,000)  to  be  paid  to  the  said  parties  of 
the  first  part. 

It  is  further  agreed  between  the  parties  hereto  that  after  the  said 
parties  of  the  second  part  shall  have  paid  to  the  parties  of  the  first  part 
the  sum  of  Eleven  Thousand  Dollars  ($11,000),  net,  as  aforesaid,  the  par- 
ties 'hereto  shall  each  receive  one-half  of  the  balance,  whether  in  lots, 
monies  or  mortgages,  or  any  or  all  of  them,  after  said  street  work,  ex- 
penses, advertising  and  commissions  are  deducted  and  when  the  same  are 
fully  discharged. 

It  is  further  agreed  between  the  parties  hereto  that  the  parties  of  the 
first  part  shall  make  all  conveyances  or  other  instruments  in  writing  as 
shall  be  necessary  to  effect  such  division,  upon  the  request  of  said  parties 
of  the  second  part,  after  their  final  settlement  with  the  parties  of  the  first 
part,  provided  the  parties  of  the  second  part  shall  have  fulfilled  on  their 
part  the  covenants  of  this  agreement. 

It  is  further  agreed  between  the  parties  hereto  that  time  is  of  the 
essence  of  this  agreement,  and  that  the  parties  of  the  second  part  agree 
to  complete  the  sale  of  the  entire  premises  above  described  as  soon  as  the 
same  can  reasonably  be  done,  not  to  exceed  three  years  from  and  after 
the  tenth  day  of  June,  1905. 

It  is  further  agreed  between  the  parties  hereto  that  the  parties  of  the 
second  part  shall  not  assign,  set  over  or  transfer  this  contract,  or  any  of 
the  rights  hereunder,  to  any  person  or  persons  without  the  consent  in 
writing  first  had  and  obtained  from  said  parties  of  the  first  part. 

It  is  further  agreed  that  all  conveyances,  and  agreements  to  convey, 
shall  be  made  only  by  the  parties  of  the  first  part. 

It  is  further  agreed  between  the  parties  hereto  that  this  contract 
is  made  on  each  and  all  of  the  said  covenants  and  agreements,  and  the 
failure  to  comply  with  each  and  every  one  of  the  above  covenants  will 
immediately,  at  the  option  of  the  parties  of  the  first  part,  work  a  forfeiture 
of  this  contract  and  terminate  the  same. 

The  covenants  herein  by  which  the  respective  parties  have  bound 
themselves  shall  bind  their  respective  heirs,  executors,  administrators,  as- 
signs and  successors  in  interest,  and  all  reservations  herein  made  and  all 
benefits  to  accrue  hereunder  to  the  respective  parties  hereto  shall  inure 
to  the  benefit  of  their  respective  heirs,  executors,  administrators,  assigns 
and  successors  in  interest. 


REAL  ESTATE  AT  A  PROFIT  187 

IN  WITNESS  WHEREOF,  the  said  parties  hereto  have  hereunto  set  their 
hands  and  seals  the  day  and  year  first  above  written. 

S.  A.  BELCHER.  (Seal)  JAMES  R.  BLACK,          (Seal) 

SARAH  BELCHER,  (Seal)  GEORGE  L.  WHITE,        (Seal) 

FORM  NO.  88— DECLARATION  OF  TRUST  AS  TO   PROPERTY 

"CONVEYED  TO  TITLE  COMPANY  TO  BE 

SUBDIVIDED  AND  SOLD. 

DECLARATION  OF  TRUST. 

KNOW  ALL  MEN  BY  THESE  PRESENTS,  that,  Whereas,  there  has  been 
conveyed  by  Q.  A.  Sawyer,  of  the  County  of  Los  Angeles,  State  of  Cali- 
fornia, to  the  Title  Insurance  and  Trust  Company,  a  corporation  organized 
and  existing  under  the  laws  of  the  State  of  California,  and  having  its 
principal  place  of  business  at  the  City  of  Los  Angeles,  County  of  Los 
Angeles,  State  of  California,  the  following  described  real  property,  situate, 
lying  and  being  in  the  County  of  Los  Angeles,  State  of  California,  to-wit : 
(Description  of  Property)  ;  and, 

WHEREAS,  the  partial  consideration  for  said  conveyance,  to-wit,  the 
sum  of  Three  Thousand  Dollars  ($3000),  has  been  paid  to  said  Q.  A. 
Sawyer  by  Hiram  Tuttle  and  Ebenezer  Strout,  of  the  County  and  State 
aforesaid,  hereinafter  referred  to  as  the  beneficiaries  hereunder,  and  no 
part  of  such  consideration  has  been  paid  by  the  Title  Insurance  and  Trust 
Company,  and  the  said  Tuttle  and  Strout  are  in  fact  the  owners  of  said 
property,  subject  to  the  indebtedness  owing  by  them  to  said  Q.  A.  Sawyer 
as  hereinafter  mentioned  and  referred  to : 

Now,  THEREFORE,  the  Title  Insurance  and  Trust  Company  declares 
that  it  Holds  Said  Real  Property  in  Trust  for  the  purpose  of  selling  the 
lots  in  a  subdivision  of  said  property  hereinafter  mentioned  and  referred 
to,  at  prices  not  less  than  the  schedule  of  prices  hereto  affixed  and  made 
a  part  hereof,  and  of  applying  and  disposing  of  the  proceeds  arising  from 
said  sales  in  accordance  with  the  terms  of  this  instrument. 

All  deeds  executed  by  the  Trustee  shall  be  substantially  in  the  form 
of  the  said  deed  hereto  annexed,  marked  "Exhibit  A,"  and  made  a  part 
hereof,  and  all  agreements  to  convey  shall  contain  like  restrictions  as  in 
said  deed  contained. 

The  Trustee  shall  cause  said  property  to  be  subdivided  into  lots  and 
blocks,  according  to  the  map  thereof  attached  hereto  and  made  a  part 
hereof,  and  dedicate  to  public  use  the  streets  and  alleys  of  such  subdivi- 
sion and  record  said  map  in  the  office  of  the  County  Recorder  of  said 
County. 

The  monies  received  by  the  said  Trustee  from  the  sale  of  said  prop- 
erty shall  be  applied  and  disbursed  as  follows : 

To  said  Q.  A.  Sawyer,  the  sum  of  Five  Thousand  Dollars,  as  fol- 
lows: 

One  thousand  dollars  on  or  before  July  10,  1905;  one  thousand  dol- 
lars on'  or  before  January  10,  1906;  one  thousand  dollars  on  or  before 
July  10,  1906;  one  thousand  dollars  on  or  before  January  10,  1907,  and 
one  thousand  dollars  on  or  before  July  10,  1907,  together  with  interest 


188  HOW  TO  BUY  AND 

on  said  deferred  payments,  from  date  until  paid,  at  the  rate  of  seven  per 
cent,  per  annum,  payable  quarterly. 

Partial  payments  may  be  made  by  said  Trustee  to  the  said  Q.   A. 
Sawyer  on  the  foregoing  indebtedness  from  monies  received  from  sales 
of  said  property  upon  the  basis  of  the  following  schedule  of  prices : 
(Copy  of  schedule.) 

The  balance  of  the  monies  received  by  said  Trustee  from  the  sale  of 
each  half  block  after  the  said  Q.  A.  Sawyer  shall  have  been  paid  for  each 
half  block  respectively,  according  to  the  foregoing  schedule  of  prices  (such 
payments  to  said  Q.  A.  Sawyer  not  to  exceed  in  the  aggregate  the  amount 
owing  to  him  hereunder  with  interest),  shall  be  applied  and  disbursed  as 
follows : 

To  the  expenses  of  the  Trustee,  in  the  recording  of  deeds  necessary 
to  vest  the  title  to  said  property  in  the  said  Trustee,  and  to  the  fees  for 
the  recording  of  the  map  of  the  subdivision  of  said  property,  and  to  the 
charges  of  the  Trustee  in  the  execution  of  this  trust,  hereby  fixed  at 

per  lot,  and  to  the  cost  of  certificates  of  title,  hereby  fixed  at 

per  lot,  and    for  each   additional  lot  included  in  the 

same   certificate,    and    for   the   acknowledgment   of   each    deed 

executed  hereunder : 

To  the  payment  of  the  taxes  levied,  assessed  or  imposed  on  or  against 
said  property,  not  payable  by  purchasers  thereof,  save  and  except  the  taxes 
of  the  fiscal  year  1905-1906: 

To  the  expenses  in  surveying  said  property  for  the  purpose  of  sub- 
dividing the  same,  and  for  improving  the  streets  and  for  laying  sidewalks 
thereon : 

To  pay  five  per  cent,  commission  on  all  lots  sold : 

To  pay  advertising  and  other  incidental  expenses  incurred  in  placing 
said  property  on  the  market : 

All  bills  contracted  shall  be  O  K'd  by  said  Tuttle  and  Strout,  or 
either  of  them,  for  payment  by  said  Trustee. 

The  remainder  of  the  mone^  so  received  by  said  Trustee  shall  be  paid 
to  the  beneficiaries  hereunder,  as  their  interests  therein  may  appear. 

No  conveyance  shall  be  made  unless  at  least  one-fourth  of  the  agreed 
price  for  such  lot  (which  price  shall  in  no  case  be  less  than  the  schedule 

price  of  snch  lot)   shall  have  been  paid  in  cash,  and in 

months,  and in months,   and in months 

after  date,  with  interest  at  the  rate  of per  cent,  per  annum,  pay- 
able semi-annually,  the  deferred  payments  to  be  secured  by  a  mortgage 
on  the  purchased  premises. 

When  the  whole  sum  of  Five  Thousand  Dollars,  with  interest  there- 
on as  herein  provided,  shall  be  paid,  then  and  thereupon  this  trust  as  to 
the  said  Q.  A.  Sawyer  shall  cease  and  terminate  and  all  the  said  real 
property  remaining  unsold,  and  all  contracts,  agreements,  notes  and  mort- 
gages in  the  hands  of  said  Trustee,  representing  or  securing  the  deferred 
payments  upon  the  sale  of  any  property  made  by  it  hereunder,  shall  vest 
in  and  belong  to  the  said  Hiram  Tuttle  and  Ebenezer  Strout,  to  whom, 


ESTATE  AT  A  PROFIT  189 

upon  the  occurrence  of  such  contingency,  the  same  are  hereby  transferred 
and  conveyed;  provided,  however,  that  if  default  be  made  in  the  payment 
of  the  monies  to  the  said  Q.  A.  Sawyer,  within  thirty  days  after  the  time 
hereinbefore  mentioned  for  their  payment,  then  and  thereupon  this  trust 
shall  cease  and  terminate  and  all  of  said  property  which  has;  not  been 
conveyed  by  said  Trustee  shall  vest  in  and  belong  to  the  said  Q.  A.  Saw- 
yer, and  all  contracts  and  agreements  in  the  hands  of  said  Trustee  shall 
also  vest  in  and  belong  to  the  said  Q.  A.  Sawyer,  and  all  of  said  reai 
property  so  remaining  shall  be  conveyed  to  the  said  Q.  A.  Sawyer,  and 
all  contracts  and  agreements  in  the  hands  of  the  said  Trustee  shall  be 
assigned  to  and  delivered  to  the  said  Q.  A.  Sawyer,  to  whom,  upon  the 
occurrence  of  such  contingency,  the  same  are  hereby  assigned,  transferred 
and  conveyed,  and  all  monies  theretofore  paid  to  the  said  Q.  A.  Sawyer 
shall  be  forfeited  to  him  without  recourse,  as  agreed  and  liquidated  dam- 
ages. 

The  schedule  of  prices  may  be  changed  at  any  time  by  the  benefi- 
ciaries hereunder  (save  and  except ),  their  heirs  and  assigns; 

provided,  in  case  said  prices  are  diminished,  such  diminished  prices  shall 
not  be  less  than  the  price  to  be  paid  to  the  said  Q.  A.  Sawyer. 

This  trust  shall  not  cease  or  terminate  until  the  said  Trustee  shall 
have  been  paid  its  expenses  as  herein  provided,  and  shall  have  been  re- 
imbursed for  all  monies  which  may  have  been  expended  in  and  about  the 
execution  of  this  trust. 

The  said  Trustee  may  employ  all  of  the  beneficiaries  of  this  trusH 
and  such  other  person  or  persons  as  it  may  deem  best,  as  its  agents  in 
the  sale  of  said  property,  and  in  the  transaction  of  the  business  necessary 
to  carry  out  the  terms  of  this  trust. 

Every  stipulation,  condition  and  agreement  herein  shall  inure  to  the 
benefit  of  the  heirs,  executors,  administrators,  successors  or  assigns  of 
the  respective  parties  hereto. 

IN  WITNESS  WHEREOF,  said  Title  Insurance  and  Trust  Company  has 

hereunto  caused  its  corporate  name  to  be   subscribed  and   its  corporate 

seal  to  be  affixed,  by  its  President  and  its  Secretary,  and  said  Q.  A.  Sawyer 

has  hereunto  set  his  hand  and  seal,  this  tenth  day  of  January,  A.  D.,  1905. 

TITLE   INSURANCE  AND   TRUST   COMPANY. 

By    its    President  

By    its    Secretary  

Q.  A.  SAWYER.     (Seal) 

We,  the  undersigned  beneficiaries,  do  hereby  certify  and  declare  that 
the  above  and  foregoing  declaration  of  trust  correctly  sets  forth  and  dis- 
closes the  trusts  upon  which  Trustee  holds  and  shall  hold  said  property. 

HIRAM  TUTTLE.         (Seal) 
EBENEZER  STROUT.     (Seal) 
(Then  follows  schedule  of  prices,  and  "Exhibit  A.") 


190  HOW  TO  BUY  AND 


CHAPTER  XL 

HOW  AND   WHEN   TO 

•  Sale  Defined—  Duty  Assumed  by  Real  Estate  Broker—  Is  Entitled  to  His  Com- 
mission Upon  Producing  Purchaser  Able  and  Willing  to  Purchase  on  Vendor's  Terms- 
Predicament  of  Vendor  Who  Does  not  Read  Contract  with  Broker  —  Suggestion  as  to 
Equitable  Contract  —  Advantage  of  Well-Kept  Premises  —  Advertising  the  Place  — 
Owner  Insensible  to  Possibilities  of  his  Own  Surroundings—  Owner  Should  Deal  with 
Experienced,  Well-informed  Broker—  Best  Time  to  Sell—  Selling  or  Holding,  Which? 
—  Real  Estate  Business  Very  Uncertain  if  Loosely  Conducted  —  Duty  of  Owner  — 
Giving  Options—  Bill  of  Sale  of  Personal  Property—  Conditional  Sales  of  Personal 
Property—  Sales  of  Stocks  of  Merchandise  in  Bulk. 

Sec.  140.  A  sale  is  a  contract  by  which,  for  a  pecuniary 
consideration,  called  the  price,  one  person,  called  the  seller, 
transfers  to  another  person,  called  the  buyer,  an  interest  in 
property.  The  seller  is  also  called  the  vendor  and  the  buyer 
is  called  the  vendee. 

Sec.  141.  A  real  estate  broker  or  agent  is  one  who  makes 
a  bargain  for  another  and  receives  a  commission  for  so  doing. 

Sec.  142.  The  duty  assumed  by  such  a  broker  is  to  bring 
the  minds  of  the  buyer  and  the  seller  to  an  agreement  of  sale, 
together  with  the  price  and  terms  on  which  the  deal  is  to  be 
made,  and  until  he  has  done  this,  his  rights  to  a  commission 
do  not  accrue;  but  the  agreement  by  the  purchaser  must  be 
one  that  is  valid  and  can  be  enforced.  A  deposit  or  payment 
on  account  made  by  the  purchaser  to  the  broker,  is  insufficient  ; 
a  writing,  signed  by  the  party  to  be  charged,  is  indispensable. 

Sec.  143.  To  entitle  a  broker,  who  has  been  employed  to 
negotiate  a  sale  of  real  estate,  to  his  commission  as  agreed 
upon  with  his  principal,  he  must  produce  a  purchaser  able, 
ready  and  willing  to  purchase  on  the  vendor's  terms,  and 
such  purchaser  must  sign  a  binding  contract  to  purchase  on 
the  vendor's  terms.  As  soon  as  the  purchaser  has  done  this, 
the  agent's  right  to  his  commission  accrues,  and  such  right 
does  not  depend  upon  the  final  acceptance  by  the  purchaser  of 
a  conveyance  to  him  of  the  property  sold  ;  nor  does  it  depend 
on  the  vendor  completing  the  sale. 

Sec.  144.  A  written  contract  of  purchase  may  be  rendered 
unnecessary  if  the  agent  brings  the  vendor  and  the  purchaser 
together,  and  the  purchaser  states  to  the  vendor  that  he  is  able, 
ready  and  willing  to  complete  the  deal  provided  the  vendor 
will  make  a  conveyance  to  him  of  the  property.  In  such  case, 


REAL  ESTATE  AT  A  PROFIT  191 

the  agent  has  done  all  that  he  can  do,  and  if  the  vendor,  under 
such  circumstances,  refuses  to  complete  the  sale,  he  neverthe- 
less will  be  compelled  to  pay  the  agent  his  commission.  Where 
the  broker  has  brought  the  parties  together  in  this  way,  and 
they  have  agreed  verbally  upon  the  terms  of  the  sale,  it  is 
necessary  for  them  to  enter  into  a  written  memorandum  of 
sale,  signed  preferably  by  both  of  them,  and  reciting  the  price, 
terms  and  other  particulars.  Such  agreement  relates  only  to 
the  deal  between  the  parties,  and  if  not  entered  into,  will  not 
affect  the  broker's  right  to  his  commission. 

Sec.  145.  The  object  of  the  vendor  is  to  make  a  sale  of 
his  property,  and  the  rule  of  law  is  that  when  a  real  estate 
broker  has  produced  a  contract,  executed  by  a  solvent  pur- 
chaser, he  is  then  entitled  to  pay  for  his  services  from  the  ven- 
dor, whether  or  not  the  trade  is  finally  consummated ;  for,  if 
the  purchaser  refuses  to  take  the  property,  the  vendor  holds 
a  contract  which  renders  the  purchaser  liable  for  all  damages 
including  the  commission  paid  by  the  vendor  to  the  broker. 

Sec.  146.  A  land  owner  entered  into  a  written  agreement 
with  real  estate  brokers  substantially  as  follows :  'Tor  and 

in  consideration  of  the  services  to  be  performed  by 

I  hereby  employ  them  as  my  sole  and  exclusive  agents  to  sell 
for  me  that  certain  real  property,  situate  in  the  county  of 
,  State  of ,  described  as  follows."  (Descrip- 
tion.) "This  employment  and  authority  shall  continue  for 
the  full  term  of  thirty  days  and  thereafter  until  withdrawn  by 

me  in  writing;  and  I  agree  to  pay  said in  the  event  of 

a  sale  by  them  or  by  anyone  else,  including  myself,  while  this 
contract  is  in  force,  the  sum  of  $ ,  as  and  for  their  com- 
pensation and  commission  hereunder."  After  the  thirty  days 
had  expired,  and  without  withdrawing  this  authorization,  the 
owner  made  a  sale,  and  the  agents  sued  for  the  commission, 
which  was  granted  by  the  courts.  This  land  owner  also  sought 
to  have  the  contract  set  aside  on  the  ground  of  mistake,  or 
fraud,  alleging  that  she  did  not  read  the  contract  in  its  en- 
tirety before  signing  it ;  but  the  court  said  that  a  person  who 
has  the  ability  to  read,  and  who  fails  to  read  a  contract  in  its 
entirety  before  signing  will  nevertheless  be  bound  by  it;  nor 
can  such  land  owner  rely  upon  the  statements  of  the  broker  as 


192  HOW  TO  BUY  AND 

to  the  contents  of  the  contract,  as  there  is  no  relation  of  con- 
fidence existing  between  the  owner  and  the  broker.  No  law 
has  yet  been  devised  which  will  protect  a  person  from  the  con- 
sequences of  his  own  carelessness  or  ignorance. 

Sec.  147.  From  the  standpoint  of  equity,  and  of  the  agent 
sharing  with  the  owner  the  contingencies  of  sale,  the  agreement 
between  the  vendor  and  the  agent  as  to  commissions  should 
provide  for: 

(i.)     The  price  at  which  the  agent  is  to  sell  and  the  terms. 

(2.)  That  the  owner  himself  may  make  a  sale  without 
payment  to  the  agent  of  commission. 

(3.)  That  the  agent  shall  not  be  entitled  to  his  commis- 
sion until  the  transfer  has  been  completed  and  the  money  paid 
over,  and  shall  be  payable  out  of  the  monies  received  from 
the  sale  of  the  property ;  and  if  such  monies  be  payable  in  in- 
stallments, that  the  commission  also  be  payable  in  install- 
ments. 

(4.)  That  if  the  deposit  made  by  the  purchaser  be  for- 
feited to  the  vendor,  the  agent's  commission  shall  be  calculated 
only  on  the  amount  of  such  deposit.  Form  No.  90  seems  to 
meet  most  nearly  the  requirements  of  the  average  sale. 

Sec.  148.  An  experienced  real  estate  man,  who  had  spent 
a  lifetime  in  selling  farms,  once  remarked  that  a  neat,  well- 
kept  yard  added  at  least  five  hundred  dollars,  and  sometimes 
as  much  as  one  thousand  dollars,  to  the  selling  value  of  a  farm. 
The  same  is  true  in  a  lesser  degree  of  the  yards  of  city  lots. 
The  neat,  cozy,  homelike  appearance  which  prevails  around 
some  houses  assists  greatly  towards  making  a  sale,  particu- 
larly when  the  wife  of  the  prospective  buyer  comes  to  view  the 
premises.  The  beauty  of  the  ceiling  or  wall  decorations  often- 
times tends  to  make  a  sale.  The  chances  of  making  a  sale  are 
lessened  where  the  seller  has  to  apologize  at  every  step  for 
the  untidy  appearance  of  the  interior  of  the  house.  A  coat  of 
fresh  paint  on  a  weather-beaten  house  vastly  improves  its  ap- 
pearance, preparatory  to  a  sale. 

Sec.  149.  If  one  wishes  to  dispose  of  a  place  by  means  of 
advertising,  he  can  readily  undertake  the  matter  by  placing  an 
advertisement  in  the  newspaper  most  likely  to  reach  prospec- 
tive buyers.  Parties  who  have  resided  for  a  long  time  in  a 


REAL  ESTATE  AT  A  PROFIT  193 

certain  place,  do  not  realize  the  advantages  of  that  place  as 
well  as  do  outsiders,  and  an  advertisement  gotten  up  by  such 
a  party  is  apt  to  be  rather  tame.  Newspaper  advertising  at 
the  present  day,  when  so  much  of  it  is  being  done,  requires  ex- 
perience and  study  to  make  it  effective.  A  story  is  told  of  a 
man  who  became  tired  of  living  in  a  certain  community  and 
offered  his  farm  for  sale  through  a  real  estate  broker.  The 
broker  advertised  the  property  extensively  and  the  following 
week  it  happened  that  this  party  read  in  a  newspaper  the 
broker's  description  of  his  place.  He  did  not  recognize  the 
place  from  the  description  and  asked  his  wife  whose  place  it 
was.  After  considerable  discussion,  they  discovered  it  to  be 
their  own  place,  the  good  qualities  of  which  had  been  described 
by  the  agent  in  a  way  that  had  not  occurred  to  them.  The  possi- 
bilities of  their  own  surroundings  were  thus  forcibly  impressed 
upon  them  and  the  party  withdrew  the  place  from  the  market. 
A  suggestion  for  an  advertisement  by  an  owner  is  shown  on 
page  194.  Real  estate  dealers  prepare  elaborate  advertise- 
ments, a  sample  of  same  being  shown  on  page  195. 

Sec.  150.  An  investor  will  obtain  more  satisfactory  re- 
sults, either  in  selling  or  buying,  if  he  deals  with  a  real  estate 
broker  of  experience  and  who  is  well  acquainted  with  real  es- 
tate values,  and  who  has  been  in  the  business  in  one  section 
for  a  considerable  length  of  time.  A  broker  who  makes  a  spe- 
cialty of  a  certain  section  of  a  city  is  often  at  sea  as  to  values 
in  another  part  of  the  city.  The  investor  should  consult  the 
broker  best  acquainted  with  the  section  in  which  the  invest- 
ment is  to  be  made. 

Sec.  151.  The  best  time  to  sell  is  when  there  are  several 
buyers  for  the  same  property;  that  is  to  say,  when  the  demand 
exceeds  the  supply.  There  is  then  no  difficulty  in  making  a 
sale.  When  one  has  bought  a  desirable  property,  he  should 
determine  immediately  the  price  at  which  he  will  sell,  as  by 
adhering  to  the  price  he  will  be  the  more  likely  to  obtain  it, 
provided  the  price  is  reasonable. 

Sec.  152.  Where  property  is  situate  near  the  center  of  a 
large  and  growing  city,  it  will  always  be  a  debatable  question 
with  the  owner  whether  to  sell  or  not  to  sell,  with  the  weight 
of  the  argument  in  favor  of  not  selling,  provided  the  circum- 


194 


HOW  TO  BUY  AND  SELL 


Be  Wise!     Notice!     Look;  Here! 

Buy— A  Great  Bargain— Now 


~-\ 


3S22S&4 


Wiiiim^iMmm 


We  don't  believe  you  can  EQUAL  THIS  ONE  for  an 

Ideal,  Cozy,  Convenient  Home,  and  its  Location 

esj^cially  recommends  it.  In  KfrlgSVille  (Ashtabula  Co.);  Ohio, 
one  of  the  PRETTIEST  little  towns  to  live  in  you  ever  saw,  only  a  few 
moments'  ride  on  either  the  P.  &  O.  ELECTRIC  LINE,  or  the  L.  S.-M.  S.,  or 
NICKEL  PLATE  H.  R.  or  to  drive  it  is  delightful,  and  good  roads  always. 
KINGSVILLE  Is  th«  FATHER  of  the  "CENTRALIZATION  SCHOOL  PLAN" 
Where  ALL  CHILDREN  are  brought  Jnto  ACRES  SEEDED  to  clover  and  timothy 
TOWN*,  receiving  the  SAME  ADVAN-  •  for  this  year's  harvest.  ;is  well  as  QIIOW- 
TAOES  as  do  the  town  children,  and  this  I  TN'G  WHEAT  and  RYE.  arid  15  acres  for 
BEAUTIFUL  HOME  Is  located  not  over  a !  spring  crops.  Last  year  we  raided  the 
BLOCK  from  this  ELEGANT  SCHOOL,  BEST  CORN  AND  OATS  US.  OLD  AS«- 
or  from  tho  BAPTIST  CHURCH  and  ouly  TABULA  CO.  en  this  place.  £EKD  now 
two  blocks  from  tho  METHODIST  or.  FOR  SALE.  It  also  contains  20  acres  of 
PRESBYTERIAN  CHURCHES.  The;  the  BEST  PASTURE,  \vlth  300  ELEGY-NT 
TOWNM^-IDEAL,  tho  PEOPLE  SPLEN- i  MAPLE  TREES,  constituting  one  of  the 
DID,  and  the  home  elf  gant  and  modern  in  I  b'-st  "SUGAR  BUSHES"  IN  THE  CO., 
EVERY  SENSE  OF  THE  WORD.  Has  \.  with  a  good  SUGAR  HOUSE  and  BARN 
NICE  FURNACE.  NATURAL  .  GAS  and  I  ami  well  of  FINE  WATER.  Farm  just 
ELEGANT  FIXTURES  throughout,  fine  CLEANED  AND  UX&BRBRUSHED  rnd 
LARGE  PORCHES,  PLATE  GLASS  WIN- *  FENCED.  This  Is, one  of  the  OLD  and 
DOWS  and  DOORS,  GRATE  and  MANTEL  PROSPEROUS  and  WELL  KEPT 


FOR  GAS.  10  ROOMS,  all  flno-and  NEWLY 
PAPERED,  GOOD  BARN,  CHICKEN 
PARK.  ICE  HOUSE  and  12  ELEGANT 
FRUIT  TREES,  all  heaving;  FINE  CIS- 
TERN, with  water  in  kitchen,  BROAD, 
EASY  OPEN  STAIRS  in  OAK  and  ALL 
FINtSHUD  IN  NATURAL  WOOD 
THROUGHOUT.  This  is  the  most  "oxy 
and  UP-TO-DATE  HOME  in  Ihe  place. 

NOTHING  LACKING.    LOT  w,.\ir,o,  -with 

elegant  WELL-  OF  SOFT  SV'RINC, 
WATER.  BEST  NEIGH HOKS,  .lur.t  a 
fihort  distance  from  Lake  Erie.  Also 

We  have  a  BEAUTIFUL  FARM  of  70 
acres  jtut  one-half  mill-  south  of  tho 
homo.  HIGHLY  IMPROVED,  with  30 


189  Main-st 


FARMS.  ALL  KINDS  OF  SOiL.  You 
can  raise  anything  on  It^-EVEN  MORT- 
GAGES. Wo  will  sell  ANY  NUMBER 
OF  ACRES,  or  all.  of  this  farm  with  the 
abovo  homot  or  the  HOME,  or  FARM 
SEPARATE.  Immediate  possession,  if 
desired.'  We  will  name  a  CASH  PRICB 
that  will  surprise  vou,  or  will  soil  on  any 
tcrrnn  suitable.  Wo  are  In  AshtHbula? 
where  businofs  prevents  us  from  longer 
{xrupylcg  the  plaee,  our  only  reason  for 
£;<-!ll!i£.  D-jn't  delay.  Don't  look  farther. 
Come  ai'd  sf-e  nu^;  don't  write  unless  you 
moan  hiisiiicKt-.  Will  also  ?cll  t>art  of  our 
hoiinchdd  Koods.  if  desired.  All  new. 
Address  or  rail  on 


C.  A.  Thatcher  -Ashtabula.O.. 


REAL  ESTATE  AT  A  PROFIT 


195 


THE  DOOR  IS  CLOSING 


IF  NOT 
GET 

On  This  Unparalleled  Opportunity 

Remember,  we  are  aiding  everybody  who  would   like  to 
get  a  LOT  In  our  allotment  on 

GOODMAN  -'  FORCE-STS 


by    paying"  them   a   day's   wages    (not    to    exceed    $3*i    for    the 
time  they  might  "  A~  "  --—  --  *•  •-- 

HOME  SITES 


have  to  lose  securing  one  of  these  unequaled 


|n; 

ic;] 

/ 


Prices  of 
Lots 

S20'0 

and  up. 
Xothlnr   over   $450. 


Water,  Gas, 

Stone 
Sidewalks 

and 
Shade  Trees  j 


We  Are  Closing  This  Door  of  Opportunity 

Don't  Fail  to  Get  In 

Go  to  the  Allotment  on  Sunday 

TO  GET  TO  THE  ALLOTMENT  TAKE  HROADWAY  CAR. 
get  off  at  Warner  Road.  KO  two  blocks  to  the  right  on  Warner 
load  to  Goodman-st.  OUR  ALLOTMENT'  OFFICE  IS  100 
OOODM-AN-ST. 


England  Fids'. 


9:30  Saturday  and  Uondaj 


THE  KING  REALTY  CO. 

1101  New  England 
Building 


196  HOW    TO    BUY    AND    SEU« 

stances  of  the  owner  permit  of  his  caring  for  the  taxes  and 
street  assessments,  if  the  property  is  unimproved.  In  1626 
the  Dutch  purchased  Manhattan  Island,  on  which  is  situate 
the  City  of  New  York,  for  twenty-four  dollars.  The  surround- 
ing country  was  not  then  considered  worth  buying.  Today 
the  value  of  the  land  and  buildings  of  the  city  of  New  York  is 
not  less  than  four  billion,  five  hundred  million  dollars.  This 
is  at  the  rate  of  one  hundred  and  twenty-five  thousand  dollars 
an  acre,  and  there  are  sections  on  lower  Broadway  that  could 
not  be  bought  for  a  thousand  times  that  price.  Thirty-five 
years  since,  the  owner  offered  a  lot  adjoining  the  corner  of 
Fourth  and  Hill  streets,  Los  Angeles,  to  a  friend,  free  of  cost, 
provided  the  latter  would  erect  a  house,  and  was  laughed  at. 
The  corner  was  recently  sold  for  one  hundred  thousand  dol- 
lars. Many  who  are  wealthy  today  have  become  so  through 
judicious  investments  in  real  estate  made  by  their  ancestors. 

Sec.  153.  The  business  of  a  real  estate  broker,  if  loosely 
conducted,  is  the  most  uncertain  business  in  the  world.  He 
may  expend  considerable  time,  and  some  money  for  advertis- 
ing, on  the  strength  of  a  verbal  promise  from  a  property 
owner,  and  may  sell  the  property  at  the  price  asked  by  the 
owner,  take  a  deposit,  and  have  the  purchaser  sign  a  contract 
of  sale,  only  to  be  informed  by  the  owner,  when  the  latter  is 
asked  to  sign  the  contract  by  way  of  ratification,  that  the 
owner  has  decided  not  to  sell.  The  broker  is  placed  in  an  em- 
barrassing position  and  the  would-be  purchaser  is  disgusted. 
If  the  broker  brings,  or  sends,  a  number  of  persons  to  view  the 
property,  the  owner  obtains  an  enlarged  idea  of  the  value  of 
the  property,  and,  although  in  other  matters  his  word  may  be 
as  good  as  his  bond,  he  violates  his  promise  to  the  broker  with 
impunity.  If  an  owner  really  wishes  to  sell,  that  end  will  best 
be  served  by  his  giving  a  reliable  real  estate  broker  the  ex- 
clusive agency  in  writing  for  the  sale  of  the  premises,  for  say 
sixty  to  ninety  days,  at  a  fixed,  but  not  prohibitive,  price.  The 
broker  can  then  spend  money  freely  in  advertising  and  can  ap- 
proach a  customer  confidently  and  with  the  assurance  that  he 
can  deliver  the  property — a  state  of  mind  that  is  helpful  in 
making  a  sale. 

Sec.  154.     Real  estate  brokers,  in  some  cases,  take  written 


REAL  ESTATE  AT  A  PROFIT  197 

options  on  property  for  a  certain  time  and  at  a  fixed  price,  pay- 
ing the  owner  a  small  consideration  therefor.  Any  increase 
in  the  value  of  the  property  while  the  option  is  in  force,  belongs 
to  the  broker  if  he  exercises  the  option.  When  trading  is  brisk, 
an  owner  is  disinclined  to  give  an  option,  as  he  wishes  to  real- 
ize the  full  value  of  his  property. 

Sec.  155.  Agreements  of  conditional  sale,  sometimes 
called  leases,  are  made  where  it  is  the  intention  that  the  title 
to  personal  property,  which  is  delivered  at  the  time  of  the  ex- 
ecution of  the  contract,  shall  not  pass  from  the  vendor  to  the 
vendee  until  the  performance  by  the  vendee  of  some  condition. 
A  purchaser  of  personal  property  from  a  person  to  whom  the 
same  is  delivered  under  an  executory  contract  of  sale  gets  no 
valid  claim  to  the  property.  An  absolute  promise  to  pay  does 
not  necessarily  render  the  sale  itself  absolute.  (See  Form  No. 

92.) 

Sec.  156.  Where  the  sale,  assignment  or  transfer  of  a 
stock  of  goods  in  bulk,  such  as  the  contents  of  a  store,  is  made, 
the  vendor  must  execute  and  acknowledge  a  notice,  as  per 
Form  No.  93,  and  the  same  must  be  recorded  in  the  office 
of  the  County  Recorder.  The  sale  cannot  be  consummated  until 
five  days  after  the  notice  is  recorded.  Wholesalers  and  job- 
bers receive  from  mercantile  agencies  daily  reports  of  instru- 
ments placed  of  record  affecting  merchants,  and  by  requiring 
the  vendor's  notice  of  sale  to  be  recorded,  the  creditors  of 
shop-keepers  have  notice  of  contemplated  transfers  of  stocks 
of  goods.  If  the  notice  is  not  recorded,  the  sale  is  presumed 
to  be  fraudulent,  and  the  purchaser  will  be  held  for  any  unpaid 
bills  relating  to  the  goods.  It  is  of  the  interest  of  every  pur- 
chaser of  goods  in  bulk,  in  California,  to  see  that  this  law  is 
complied  with. 

Sec.  157.  Where  a  sale  is  made  of  personal  property,  such 
as  household  goods,  animals,  or  store  fixtures,  either  in  con- 
nection with  or  independent  of,  real  estate,  a  bill  of  sale  of  same 
should  be  made,  as  per  Form  No.  91. 

FORM  NO.  89— OWNER'S  AGREEMENT  WITH  AGENT. 

Los  ANGELES,  CAL 190. . . 

To.  Messrs 

I  hereby  employ  you  as  my  sole  agents  for days  from  date, 


198  HOW    TO    BUY    AND 

and  thereafter  until  withdrawn,  for  the  purpose  of  negotiating  a  sale  of 
the  following  described  property,  upon  the  following  terms: 

(Description.) 

And  in  case  of  such  sale  being  made  by  or  through  your  efforts,  I 
agree  to  convey  said  property  by  good  and  sufficient  deed  to  the  purchaser, 
and  I  agree  to  pay  as  a  commission  and  full  compensation  for  services  ren- 
dered by  you,  five  (5)  per  cent  on  the  first  one  thousand  dollars  ($1000.00), 
and  two  and  one-half  (2l/2)  per  cent  on  the  remainder  of  such  sum  as  I 
may  accept  as  purchase  price.  If  property  is  sold  by  me,  or  through  some 
other  agency,  I  agree  to  pay  you  one-half  of  said  commission.  Commis- 
sion to  be  paid  out  of  the  first  money  received  as  purchase  price,  or  in 
case  of  an  exchange,  as  soon  as  the  exchange  is  agreed  upon.  In  case  I 
desire  to  change  my  price,  or  wish  to  withdraw  this  property,  after  expira- 
tion of  period  specified  above,  I  agree  to  give  you days  notice  of 

same  in  writing. 

I  also  agree  to  furnish  at  my  expense,  an  unlimited  certificate  of 
title,  to  the  satisfaction  of  the  purchaser,  showing  my  title  to  be  good. 

In  case  of  exchange,  I  have  no  objection  to  your  acting  as  agent  also 
for  the  other  party,  nor  to  your  demanding  and  accepting  from  him  proper 
compensation  for  services  so  rendered. 

Name  (Seal) 

Address   

Telephone 

FORM  NO.  90— AGENT'S  AGREEMENT  OF  SALE. 

Los  Angeles,  Cal 190. . 

Received  from the  sum  of  $ as  a  deposit  on 

account  of  the  purchase  of  the  following  described  real  ^roperty  situate  in 
the County  of  Los  Angeles,  California,  namely : 

which   property  said    agrees  to  buy  for  the   sum  of 

$ ,  payable  as  follows  : 

Said  deposit  to  be  applied  as  part  of  the  first  cash  payment  if  sale  is  com- 
pleted. All  payments  to  be  made  at  the  office  of ,  in  United 

States  Gold  Coin. 

This  sale  is  made  by  us  as  agents  for  ,  the  owner, 

and  subject  to approval.  If  so  approved,  it  is  part  of  the  contract 

of  sale  that  the  owner  shall  convey  the  premises  by  deed  of  grant  free 

from  encumbrance,  except 

and  that  the  owner  will  furnish  within days  from  date  an  unlimited 

certificate  of  title  of  the  Title  Insurance  and  Trust  Co.,  or  of  the  Title 
Guarantee  and  Trust  Co.,  of  Los  Angeles,  showing  the  title  to  be  in  the 
vendor  free  from  incumbrance,  except  as  above  excepted. 

If  the  title  shall  be  found  defective,  the  owner  shall  have  thirty  days 
from  the  date  of  the  discovery  of  the  defect  to  perfect  the  title.  If  the 
owner  shall  need  any  part  of  the  purchase  money  to  extinguish  existing  in- 


REAL  ESTATE  AT  A  PROFIT  199 

cumbrances,    then shall    deposit deed    and    the   purchaser 

shall  deposit  the  purchase  money  with  the  company  whose  certificate  is  to 
be  furnished,  with  authority  to  extinguish  the  liens  and  incumbrances, 
provided  that  by  so  doing,  and  by  the  delivery  and  recording  of  the  deed, 
the  title  will  become  vested  in  the  grantee. 

Said  deposit  shall  be  held  by ,  as  agents  for  both  parties. 

If  the  owner  cannot  convey  said  property  as  herein  provided,  within 

days  from  date,  said  deposit  to  be  returned  to  the  purchaser,  and  if  the 
purchaser  does  not  complete  the  purchase  within  ten  days  after  notice  from 
the  owner  of  his  ability  and  readiness  to  convey  said  property  as  herein  pro- 
vided, then  the  owner  may  retain  said  deposit  as  liquidated  damages,  and 
said  agents  shall  thereupon  pay  said  deposit,  less  their  commissions,  to  the 
owner. 

Time  is  made  of  the  essence  of  this  agreement. 

Agents. 

We  hereby  agree  to  all  the  conditions  herein  contained. 

Owner       Purchaser 

Address Address 

Telephone Telephone 

FORM  NO.  91— BILL  OF  SALE. 
BILL  OF  SALE. 

KNOW  ALL  MEN  BY  THESE  PRESENTS,  that  I,  George  W.  Breed,  of 
Los  Angeles,  County  of  Los  Angeles,  State  of  California,  the  party  of  the 
first  part,  for  and  in  consideration  of  the  sum  of  fifty  dollars,  gold  coin 

of  the  United  States  of  America,  to  me  in  hand  paid  by ,  of 

the  same  place,  the  party  of  the  second  part,  the  receipt  whereof  is  hereby 
acknowledged,  do  by  these  presents  grant,  bargain,  sell  and  convey  unto 
the  said  party  of  the  second  part,  his  executors,  administrators  and  as- 
signs, the  following  described  personal  property,  to-wit : 

To  Have  and  to  Hold  the  same  to  the  said  party  of  the  second  part, 
his  executors,  administrators  and  assigns,  forever.  And  I  do  for  myself, 
my  heirs,  executors  and  administrators,  covenant  and  agree  to  and  with 
the  said  party  of  the  second  part,  his  executors,  administrators  and  as- 
signs, to  warrant  and  defend  the  sale  of  the  said  property,  goods  and  chat- 
tels hereby  made  unto  the  said  party  of  the  second  part,  his  executors, 
administrators  and  assigns,  against  all  and  every  person  and  persons  whom- 
soever, lawfully  claiming  or  to  claim  the  same. 

In  Witness  Whereof.  I  have  hereunto  set  my  hand  and  seal  the 
tenth  dav  of  December,  in  the  year  of  our  Lord  one  thousand  nine  hundred 
and  five. 

GEORGE  W.  BREED.     (Seal) 

FORM  NO.  92— AGREEMENT  OF  CONDITIONAL  SALE  OF  PER 
SONAL  PROPERTY. 

THIS   AGREEMENT,   made  this day  of A.   D.   190... 

between of ,  the  party  of  the  first  part,  and ,  of 

,  the  party  of  the  second  part, 


200  HOW   TO   BUY   AND 

WITNESSETH  i  That  said  party  of  the  first  part  has  delivered,  and 
said  party  of  the  second  part  has  received,  the  following  described  per- 
sonal property,  to-wit:  (Description)  of  the  value  of  $ ,  which 

the  party  of  the  second  part  is  to  keep  in  like  good  order,  and 

for  the  use  of  which   the  party  of  the  second  part  is  to  pay  the  sum 

of  $ (same  amount  as  above)   as  follows:  $ upon  the 

execution  and  delivery  of  this  agreement,  the  receipt  whereof  is  hereby 
acknowledged,  same  being  accepted  as  a  payment  for  the  first  month  only, 

and  thereafter  at  the  rate  of  $ per  month,  payable  monthly  in 

advance  on  the day  of  each  month,  at  the  office  of  the  party  of 

the  first  part,  without  notice  or  demand,  together  with  interest  at  the 
rate  of per  cent  per  annum  on  all  amounts  unpaid  after  becom- 
ing due,  until  paid. 

That  the  said  party  of  the  first  part  will,  at  the  end  of  said  term, 
sell  and  convey  to  said  party  of  the  second  part,  the  said  goods  and  chat- 
tels for  and  in  consideration  of  the  sum  of dollars,  and  will  ex- 
ecute to  the  said  party  of  the  second  part  a  bill  of  sale  thereof. 

Said  party  of  the  second  part  hereby  agrees  to  keep  saidi  property 
insured  for  three-fourths  of  its  value  for  the  benefit  of  the  said  party  of 
the  first  part. 

It  is  further  agreed,  that  the  said  goods  and  chattels  shall  not  be 
removed  from  the  premises  now  occupied  by  said  party  of  the  second  part 
during  the  continuance  of  the  above  mentioned  lease  without  the  written 
consent  of  the  said  party  of  the  first  part. 

It  is  further  provided,  that  a  failure  to  pay  any  or  either  of  the  afore- 
said sums  of  money  when  and  as  the  same  shall  become  due,  or  any  re- 
moval or  attempted  removal  of  said  goods  and  chattels  from  said  place 
without  the  written  consent  of  the  said  party  of  the  first  part,  shall  make 
void  this  lease  and  agreement  at  the  option  of  the  said  party  of  the  first 
part;  and  the  said  party  of  the  first  part  shall  have  the  right  to  retake 
said  goods  and  chattels,  and  may  enter  and  retake  possession  of  the  same 
at  maturity  of  anv  payment,  or  any  time  thereafter,  or  upon  the  failure  to 
make  such  payments,  or  upon  the  violation  of  the  terms  of  said  lease  in 
any  manner  whatsoever,  and  may  retain  any  or  all  sums  of  money  paid 
on  this  agreement  and  lease  as  damages  for  any  injury  to  said  property 
and  for  the  use  of  same,  and  for  expenses  in  moving  and  taking  possession 
thereof ;  and  said  party  of  the  second  part  does  also  hereby  waive  all  right 
of  homestead  or  other  exemptions  under  laws  of  said  state,  as  against  this 
obligation. 

IN  WITNESS  WHEREOF,  The  said  parties  have  hereunto  set  their  hands 
and  seals  the  day  and  year  herein  first  above  written. 

(Seal) 

..(Seal) 


ESTATE  AT  A  PROFIT  201 

FORM  NO.  93— VENDOR'S  NOTICE  OF  SALE  OF  GOODS  IN  BULK 
VENDOR'S  NOTICE  OF  SALE. 

To  Whom  it  May  Concern: 

NOTICE  is  HEREBY  GIVEN,  That  the  undersigned 

intend...   to  sell  to all  that  certain  stock  of 

merchandise  consisting  generally  of belonging  to 

said and  located  at County,  California, 

and  that  a  transfer  and  assignment  of  the  same  will  be  made,  and  the  pur- 
chase price  thereof  will  be  paid,  on the day  of 

190. .  .at County,  California,  at o'clock M.     That 

the  address  of  said  vendor  is County,  California,  and 

the  address  of  said  vendee  is County,  California. 

Dated 190. .. 

Vendor. 

(  Acknowledgment. ) 


202  HOW   TO   BUY   AND   SEU, 

CHAPTER  XII. 

BOOMS  AND  PANICS. 

Close  Relation  Exists  Between  the  Buying  and  Selling  of  Real  Estate  and 
Booms  and  Panics — Boom  First  Affects  Personal  Property,  then,  Real  Estate — Sea- 
sons of  Unexampled  Prosperity  Indicate  Impending  Storm — Crises  Occur  in  Cycles — • 
Symptoms  of  Booms  and  Panics  Vividly  Portrayed — The  Office  and  Utility  of  Specu- 
lation. 

Sec.  158.  There  is  a  close  relation  between  the  buying 
and  selling  of  real  estate  .and  the  occurrence  of  booms  and 
panics.  When  manufacturing  becomes  more  brisk,  after  a 
season  of  quiescence  and  dull  prices,  speculative  trading  at 
first  is  confined  to  stocks  and  bonds.  This  sort  of  personal 
property  passes  from  hand  to  hand  by  endorsement  and  de- 
livery, and  is  subject  to  much  fluctuation  in  value,  and  for 
these  reasons  is  specially  adapted  to  speculation.  Legitimate 
enterprises,  at  greatly  inflated  values,  are  at  first  exploited  by 
heavy  operators,  and  the  stocks  of  these  are  so  readily  floated, 
that  the  major  portion  of  the  investing  public,  under  the  stim- 
ulus of  intense  excitement  and  a  gullible  frame  of  mind  caused 
by  the  report  of  large  profits,  becomes  educated  into  buying 
almost  anything  that  is  offered,  until  finally  some  of  the  sub- 
sequent exploitations  of  the  lesser  operators  have  so  little  sta- 
bility that  exposure  inevitably  follows.  Investors  by  this  time 
have  a  dark  brown  taste  in  their  mouths  and  in  their  deposit 
boxes  have  sufficient  stock  certificates,  if  spread  out,  to  cover 
the  walls  of  a  small  room,  and  are  fortunate  if  they  are  not  de- 
prived, by  means  of  an  assessment,  of  whatever  rights  they 
have  in  such  certificates. 

Sec.  159.  The  fever  of  speculation  in  personal  property 
having  spent  its  force,  real  estate  next  receives  the  attention 
of  the  speculative  investor.  During  the  period  of  excitement 
in  personal-property  trading,  real  estate  remained  dormant, 
and  the  real  estate  dealer  became  a  stock  broker.  As  a  stock 
broker  and  as  a  promoter  of  new  enterprises,  he  could  not  al- 
ways proceed  with  that  intimate  knowledge  of  the  business 
so  necessary  to  success,  as  more  than  one  real  estate  dealer 
found  to  his  sorrow  when  he  attempted  to  float  the  stock  of, 
and  manage,  an  oil  company  during  the  late  boom  in  oil  stocks. 
When  the  tide  turned  in  favor  of  real  estate,  the  dealer  gladly 
sought  his  former  calling.  So  long  as  everyone  was  clamoring 


REAL  ESTATE  AT  A  PROFIT  203 

for  stocks  and  bonds  there  was  no  demand  for  real  estate,  and 
consequently  prices  were  low.  Some  one  or  more  individuals 
who  had  passed  through  similar  experiences,  and  who  realized 
that  the  fever  of  speculation  would  change  from  one  species  of 
property  to  another,  took  note  of  the  tendency  in  affairs,  and 
purchased  at  a  low  price  and  on  easy  terms  .some  very  desir- 
able piece  of  income  property  and  the  purchase  was  duly  her- 
alded in  the  newspapers.  While  everyone  was  intent  on  buy- 
ing personal  property,  few  improvements  in  the  way  of  build- 
ing had  been  made;  the  population  had  increased  and  rents 
were  low ;  modern  and  more  costly  building  improvements 
are  in  demand  both  for  residence  and  business  purposes; 
building  commences  and  the  new  buildings  are  quickly  occu- 
pied at  remunerative  rentals ;  investors  are  thus  encouraged 
to  buy  and  build  and  a  movement  in  real  estate  is  inaugurated. 
"In  speculation  as  in  most  other  things,"  says  one  writer,  "one 
individual  derives  confidence  from  another.  Such  a  one  pur- 
chases or  sells  not  because  he  has  any  particular  or  accurate 
information  in  regard  to  the  state  of  supply  and  demand,  but 
because  some  one  else  has  done  so  before  him."  Close-in  acre- 
age property  is  next  sub-divided  and  placed  on  the  market,  and 
as  money  is  readily  made  in  "handling  sub-divisions,  other  and 
more  remote  tracts  are  sub-divided  until  trie  last  of  them  are 
miles  from  the  center  of  the  city.  New  improvements  erected 
in  the  center  of  the  city  at  the  same  time  create  a  demand  for 
properties  on  certain  close-in  streets,  and  prices  advance  rap- 
idly, and  if  there  is  sufficient  excitement  attending  the  trans- 
fers, the  movement  in  real  estate  attains  the  height  of  a  veri- 
table boom.  Confidence  in  his  own  powers  of  judgment 
should  render  a  man  prudent,  however,  in  the  midst  of  specu- 
lation and  excitement,  and  cause  him  to  withdraw  from  the 
madding  crowd  when  he  realizes  that  prices  have  exceeded 
the  limit  of  value  and  safety. 

Sec.  160.  Washington  Irving  asserts  that  those  calm, 
sunny  seasons  in  the  commercial  world  which  are  known  by 
the  name  of  "Times  of  unexampled  prosperity,"  are  sure 
weather-breeders  of  traffic.  "Every  now  and  then,"  he  says, 
"the  world  is  visited  by  one  of  these  delusive  seasons  when 
the  'credit  system/  as  it  is  called,  expands  to  full  luxuriance j 


204  HOW    TO    BUY    AND    SELL 

everybody  trusts  everybody ;  a  bad  debt  is  a  thing  unheard  of ; 
the  broad  way  to  certain  and  sudden  wealth  lies  plain  and 
open ;  and  men  are  tempted  to  dash  forward  boldly,  from  the 
facility  of  borrowing.  Promissory  notes,  interchanged  be- 
tween scheming  individuals,  are  liberally  discounted  at  the 
banks,  which  become  so  many  mints  to  coin  words  into  cash ; 
and  as  the  supply  of  words  is  inexhaustible,  it  may  be  readily 
supposed  what  a  vast  amount  of  promissory  capital  is  soon  in 
circulation.  Every  one  now  talks  in  thousands ;  nothing  is 
heard  but  gigantic  operations  in  trade;  great  purchases  and 
sales  of  real  property,  and  immense  sums  made  at  every  trans- 
fer. All,  to  be  sure,  as  yet  exists  in  promise ;  but  the  believer 
in  promises  calculates  the  aggregate  as  solid  capital,  and  falls 
back  in  amazement  at  the  amount  of  pu'blic  wealth,  the  'unex- 
ampled state  of  public  prosperity/  Now  is  the  time  for  specu- 
lative and  dreaming  or  designing  men.  They  relate  their 
dreams  and  projects  to  the  ignorant  and  credulous,  dazzle  them 
with  golden  visions,  and  set  them  madding  after  shadows.  The 
example  of  one  stimulates  another ;  speculation  rises  on  specu- 
lation ;  bubble  rises  on  bubble ;  everyone  helps  with  his  breath 
to  swell  the  windy  superstructure,  and  admires  and  wonders 
at  the  magnitude  of  the  speculation  he  has  contributed  to  pro- 
duce. Could  this  delusion  always  last,  life  would  indeed  be  a 
golden  dream;  but  it  is  as  short  as  it  is  brilliant.  Let  but  a 
doubt  enter,  and  the  season  of  'unexampled  prosperity'  is  at 
an  end.  The  coinage  of  words  is  suddenly  curtailed ;  the  prom- 
issory capital  begins  to  vanish  into  smoke;  a  panic  succeeds 
and  the  whole  superstructure,  built  upon  credit,  and  reared  by 
speculation,  crumbles  to  the  ground,  leaving  scarce  a  wreck 
behind. 

"When  a  man  of  business,  therefore,  hears  on  every  side 
rumors  of  fortunes  suddenly  acquired;  when  he  finds  banks 
liberal  and  brokers  busy;  when  he  sees  adventurers  flush  of 
paper  capital  and  full  of  scheme  and  enterprise;  when  he  per- 
ceives a  greater  disposition  to  buy  than  to  sell ;  when  trade 
overflows  its  accustomed  channels  and  deluges  the  country ; 
when  he  hears  of  new  regions  of  commercial  adventure ;  of 
distant  marts  .and  distant  mines  swallowing  merchandise  and 
disgorging  gold;  when  he  finds  joint  stock  companies  of  all 


REAIv  ESTATE  AT  A  PROFIT  205 

kinds  forming;  when  he  beholds  the  streets  glittering  with  new 
equipages,  palaces  conjured  up  by  the  magic  of  speculation, 
tradesmen  flushed  with  sudden  success  and  vying  with  each 
other  in  ostentatious  expense;  in  a  word,  when  he  hears  the 
whole  community  joining  in  the  theme  of  'unexampled  pros- 
perity/ let  him  look  upon  the  whole  as  a  'weather-breeder,'  and 
prepare  for  the  impending  storm." 

Sec.  161.  Observers  who  have  made  a  study  of  the  mat- 
ter, claim  that  booms  and  panics  occur  in  cycles.  Professor 
Levi  says :  "The  most  confident  advocates  of  the  theory  of 
periodicity  assign  to  these  cycles  a  definite  or  nearly  equal 
duration  of  ten  or  twelve  years.  According  to  John  Stewart 
Mills,  this  cycle  is  divided  as  follows :  After  each  panic  or 
crisis  the  first  three  years  will  witness  diminishing  trade,  lack 
of  employment,  falling  prices,  a  lowering  rate  of  interest  and 
very  considerable  distress.  Then  will  be  three  years  of  active 
trade,  slightly  rising  prices,  fair  employment,  improved  credit. 
Then  will  come  three  years  of  unduly  excited  trade,  in  which 
speculation  will  be  rife,  prices  will  rise  rapidly,  and  an  unusual 
number  of  new  enterprises  will  be  begun.  The  tenth  year  will 
be  one  of  crisis,  followed  by  three  years  of  depression." — (Bur- 
ton's Financial  Crises.) 

Sec.  162.  The  following  is  from  a  paper  read  by  Mr.  L. 
M.  Holt  before  the  Editorial  Association  of  Southern  Califor- 
nia, and  sets  forth  in  striking  language  the  leading  features  of 
booms  and  panics : 

A  boom  is  a  convalescent  panic.  A  panic  is  a  bursted 
boom.  The  business  interests  of  the  country  are  always  either 
on  the  up  grade  or  on  the  down  grade.  The  credit  system  for 
the  transaction  of  business  is  responsible  for  both  the  boom 
and  the  panic.  If  all  business  was  done  on  a  cash  basis,  there 
could  be  no  panics ;  neither  could  there  be  any  booms.  A 
boom  is  a  speculative  condition  of  the  market  during  advanc- 
ing prices.  A  panic  is  the  condition  of  the  market  after  prices 
have  reached  the  highest  point  possible,  and  have  begun  to  re- 
cede. If  no  one  was  in  debt  for  his  property — real  or  personal 
—at  the  time  that  prices  began  to  drop  there  could  be  no  panic, 
for  each  individual  would  still  own  his  own  property  and  it 
would  make  no  difference  to  him  whether  is  was  worth  one 


206  HOW    TO    BUY    AND    SELL 

thousand  or  five  thousand  dollars.  If,  however,  he  owned 
property  valued  at  five  thousand  dollars  and  was  in  debt  for  it 
to  his  neighbor  to  the  extent  of  three  thousand  dollars,  and  its 
market  value  should  drop  to  two  thousand  dollars,  it  would 
require  the  entire  property  and  an  additional  one  thousand 
dollars  to  pay  the  neighbor,  and  the  man's  interest  in  the  prop- 
erty would  be  entirely  wiped  out.  This  would  be  a  panic  for 
the  man — in  fact  it  would  be  pretty  near  a  panic  for  both  of 
them. 

Panics  and  booms  are  governed  by  the  law  of  supply  and 
demand.  During  a  boom,  the  demand  exceeds  the  supply; 
during  a  panic,  the  supply  exceeds  the  demand. 

There  is  a  general  feeling,  however,  when  prices  are  very 
low  and  times  are  hard  and  there  seems  to  be  no  bottom  to  the 
market,  that  the  world  has  reached  a  point  in  its  history  where 
prices  can  never  come  up  again.  And  then  again  when  prices 
are  up  and  continually  advancing  and  there  is  a  veritable  boom, 
the  feeling  is  very  general  that  good  times  will  always  continue 
and  that  hard  times  will  never  come  again.  Both  positions 
are  wrong.  Prosperous  times  are  always  followed  by  panics, 
and  panics  are  always  followed  by  prosperous1  times  again. 

After  every  panic,  there  is  a  time  when  prices  of  all  kinds 
of  property  reach  bedrock.  It  does  not  require  any  great 
amount  of  wisdom  to  convince  a  man  that  then  is  the  time  for 
him  to  buy  property;  for  prices  must  advance.  Prices  advance 
because  everybody  thinks  that  it  is. a  good  time  to  buy  and 
many  commence  buying;  therefore,  the  demand  for  property 
is  great.  This  demand  causes  a  further  advance  in  prices  and 
the  further  advance  in  prices  causes  a  still  greater  demand. 
This  condition  of  affairs  continues  until  prices  reach  a  point 
beyond  which  they  cannot  go  higher.  The  higher  prices  go, 
the  faster  they  advance,  and  the  faster  they  advance,  the  high- 
er they  go.  This  is  a  boom. 

'Finally  the  climax  is  reached  and  everybody  knows  it. 
Each  individual  thinks  he  is  smarter  than  anyone  else.  He 
has  discovered  that  the  climax  is  reached,  and  he  proposes  to 
sell  at  top  prices  before  any  one  else  finds  out  the  real  condi- 
tion of  the  market.  In  fact,  in  order  to  be  sure  of  success  in 
this  position,  he  proposes  to  sell  at  a  shade  less  than  the  real 


REAL  ESTATE  AT  A  PROFIT  207 

market  price.  He  suddenly  discovers,  however,  that  he  cannot 
sell  on  that  basis.  Others  are  trying  to  do  the  same  thing. 
Each  one  begins  to  cut  the  price  still  more  and  more  in  his 
vain  effort  to  sell,  and  the  more  they  cut  the  price  the  more 
they  cannot  sell.  The  supply  exceeds  the  demand.  This  is  a 
panic. 

Panics  and  booms  are  the  result  of  laws  governing  trade. 
An  individual  cannot  make  a  panic;  neither  can  he  stop  one. 
He  might  just  as  well  attempt  to  manufacture  a  Kansas  cy- 
clone, or  stop  such  a  cyclone  when  he  sees  it  coming.  Such 
a  cyclone  is  the  result  of  laws  over  which  human  beings 
have  absolutely  no  control.  So  is  a  panic. 

After  a  panic,  when  prices  have  reached  the  lowest  point 
possible,  and  they  begin  to  advance  again,  it  is  strange  how 
long  it  takes  the  general  public  to  realize  the  fact  that  an  ad- 
vance is  really  being  made.  The  recovery  from  a  panic  is 
slow;  the  convalescence  is  gradual;  it  comes  like  a  thief  in 
the  night — or  like  the  falling  of  the  gentle  dew. 

When  the  climax  of  high  prices*  is  reached  and  prices 
begin  to  drop  again,  there  is  no  ambiguity  as  to  the  real  con- 
dition of  the  case.  The  drop  comes  with  a  dull,  sickening 
thud — like  a  thunder  clap  out  of  a  clear  sky. 

During  the  period  of  business  activity  preceding  a  boom, 
speculation  is  at  first  confined  to  all  kinds  of  personal  prop- 
erty. Fortunes  are  made  in  stocks.  Millionaires  are  made 
in  a  day.  Great  combinations  of  capital  are  formed.  The 
heavy  operators  are  the  first  to  take  advantage  of  the  situa- 
tion. Smaller  operators  come  next  and  finally  the  general 
public  conclude  that  any  one  can  make  money  by  speculating 
and  not  half  try.  All  that  is  needed  is  a  little  money,  some 
credit  and  unlimited  nerve.  Real  estate  is  the  last  thing  to  be 
affected  by  a  speculative  period.  After  real  estate  specula- 
tion, comes  the  deluge.  When  real  estate  speculation  has 
reached  a  giddy  height,  it  is  time  for  the  cautious'  citizen  to 
build  his  ark. 

Sec.  163.  In  closing,  the  views  of  writers  on  economic 
subjects  are  given  as  to  the  office  and  utility  of  speculation. 

"Speculation  is  the  warfare  of  science,  equipped  with  the 


208  HOW    TO   BUY    AND 

knowledge  of  known  forces,  against  the  barbaric  dominion  of 
chance."  (Cohn.) 

"Speculation,  though  at  first  pursuing  its  own  interests, 
has  contributed  more  than  any  prince,  minister,  philosopher 
or  philanthropist  to  provide  Europe  with  the  means  of  com- 
munication, to  regulate  commerce,  to  give  more  solid  and  real 
character  to  business,  to  keep  down  the  rate  of  interest,  to 
extend  and  consolidate  credit,  to  limit  usury,  and  to  make 
fraud  more  uncommon."  (F.  A.  Lange.) 

"Knowledge  of  the  future  is  profitable  for  trade,  and  is  of 
supreme  importance  for  the  public  good.  To  secure  this  profit 
and  advantage  is  the  aim  of  speculation."  (Faucher.) 


INDEX 


(The  references  are  to  pages.) 

Abstract 97 

Acknowledgment,  of  deeds 51 

forms  of 72-74 

Advertising 192 

forms  for 194-195 

Assignments,  of  contract  of  sale 44-45 

of  mortgage 87 

of  lease 162 

Bill  of  Sale 197 

form  of 199 

Bonds— title 45 

of  builder 119-126 

Booms  and  Panics...  202 

Broker 31 

duty  of 190 

dealing  with 193 

broker's  agreement  of  sale 198 

Builder,  contract  of 122 

Building  and  Loan  Associations 77 

Buyer  must  beware 22 

Buying  philosophically 25 

Business,  center  of 17 

Business,  loosely  conducted 196 

Capital 11 

Commissions,  of  broker 190 

Community  property 8 

Conditions 56-61 

Contracts,  execution  of 31 

for  erecting  building 119-122 

for  drilling  oil  wells 157 

breach  of 36 

rescission  of 36 

Corporations,  deeds  by 37-50 

resolution  of 46-66-71 

Courses  and  distances 60 

Credit 13 

Curtesy 8 

Date 58 

Deeds,  analysis  of 54 

by  corporations 50 

comments  on 58 

consideration  in 58 

essentials  of ., 48 

execution  of 49 

kinds  of 49 

husband  and  wife 63 

mining  64 

mining  rights 68 

orderly  parts  of 48 

right  of  way 65 

reserving  life  estate 72 

surface  rights 66 

quitclaim  63 


210  HOW    TO    BUY    AND 

Deed  of  Trust 82 

form  of 90 

Re-conveyance 93 

Delivery,  of  deed 52 

Description 28-59 

Dower 8 

Easements 133 

Equalization,  Board  of 103 

application  to 107 

Escrows 96 

agreement  of 108 

envelope  for 109-110 

instructions  of  buyer 106 

instructions  of  seller 105 

Estates 6 

Fiscal  year 105 

Fixtures 6 

Front  foot  values 20 

Farming  lands 26 

Grant,  meaning  of 59 

Home 115 

Homestead 115-121 

declaration  of 130 

abandonment  of 132 

House,  plan  of 116 

specifications  for 117 

completion  of 120-127 

cessation  of  work  on  120-127 

How  to  buy 15 

How  and  when  to  sell 190 

Improvements 19 

Insurance 34-101 

Investor  17-19 

Investments,  what  to  avoid 14 

Interest,  rules  for  computing 77 

prompt  payment  of 78 

notice  of 86 

rebate  agreement 107 

Judgment,  what  it'consists  of 15 

Land,  accretion  to 9 

acquisition  of 9 

defined  5 

Lease 134 

forms  of — dwelling 142 

farm  lease,  California 144 

farm  lease,  Colorado 147 

oil  lease,  California 151 

oil  lease,  Colorado 149 

assignment  of 162 

notice  to  change  terms 163 

notice  to  pay  rent  or  quit 163 

notice  terminating  tenancy 164 

Liens.. 120 

notice  of 128 

of  material  man 129 

of  mechanics... 130 


REAL  ESTATE  AT  A  PROFIT  211 

L,oan,  making  a 75 

from  savings  bank 76 

from  B.  &  L.  associations 77 

applications  for 76-88 

IvOts,  key 24 

agreement  for  sale  of , 40 

what  to  avoid 24 

where  to  buy 17-115 

Maps 61 

Metes  and  Bounds 60 

Monuments 60 

Mortgage 34-61-79-80-81 

assignment  of 87 

form  of 83 

release  of 86 

Mining  claims,  locating 138 

location  notice,  quartz 170 

location  notice,  placer 171 

affidavit,  assessment 171 

affidavit,  failure  to  contribute 172 

Notes,  promissory 84-90-95 

Operative  words 59 

Options 31-197 

forms  of 42 

Ownership 7 

Owner's  agreement  with  agent 191-197 

Parties 58 

Party  wall 133 

agreement  for 174 

Percentages,  figuring , 23 

Personal  Property 197 

Petitions 140 

forms  of 173-174 

Pipe-line  right  of  way 177 

Power  of  Attorney 136 

forms  of 165-166-167 

Ratification,  of  agent's  acts 33 

of  mining  ground 50-70 

Recitals 58 

Recordation,  of  deeds 53 

endorsement  of  on  mortgage 85 

Release 86 

Remainder , 7 

Rent 5 

Restrictions 29-41 

Resolutions 46-66-71 

Reversion 7 

Sale,  agreements  of 191 

defined 190 

memorandum  of 37 

conditional 197 

of  personal  property 197 

floods  in  bulk 197 

Sage,  Russell,  advice  of 13 

Saving 11 

Savings  banks 12 

Speculation 208 


212  HOW  TO  BUY  AND  SEU, 

Subdivisions 20-181 

forms  of  contracts  for 20-183-187 

Succession , 10 

Taxes 103-107 

Thrift 11 

Title 8-33 

certificate  of Ill 

Title  Company,  liability  of 101 

Title  Insurance 99 

policy  of 112 

Trust,  deeds  of 82 

Trust,  declaration  of 187 

Torrens'  L<and  Act 137 

forms  of 168-169 

Vendor's  notice  of  sale 201 

Water,  appropriation  of 135 

form  for 164 

Will,  execution  of 140 

forms  of ,.  179 


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as  applied  to  Wholesale  Drugs,  Wholesale  and  Retail 
Lumber,  and  Retail  Dry  Goods,  Methods  and  Forms  for 
Department  Stores,  Clearing  Houses,  Savings  Banks,  39 
pages  devoted  to  Banking,  and  an  Appendix  of  65  pages, 
giving  the  fullest  and  most  valuable  collection  of  forms 
and  useful  information  ever  published  for  book-keepers 
and  business  men.  Cloth;  three  colors;  308  pp.,  8xii; 
price $2.50 

Modern  Banking  Methods  and  Practical  Bank  Book-keeping, 

by  Albert  R.  Barrett,  C.  P.  A.,  formerly  bank  expert  for 
United  States  Treasury  Department,  and  Bank  Examiner. 
Contains  325  octavo  pages.  Over  200  Improved  Forms  of 
Bank  Books,  Records  and  Blanks.  Substantially  bound 
in  cloth  with  leather  back.  Price $4.00 

The  Credit  Man  and  His  Work.  Edited  by  E.  St.  Elmo  Lewis. 
Devoted  to  Credit  Information  and  Collection  Systems ;  a 
total  of  twenty-five  chapters.  Apart  from  the  principles 
and  conclusions,  it  is  an  extremely  interesting  book,  most 
suggestive  in  its  treatment,  and  showing  a  wide  experience 
and  sympathy.  320  pp.  fully  illustrated ;  printed  from  new 
type  on  fine  paper;  handsomely  bound  in  cloth,  gold  top, 

marble  edges,   gold   stamp $2.00 

Half   Morocco    $2.50 


Credits  and  Collections.  A  condensed  synopsis  of  what  a  few 
of  the  chapters  tell :  How  to  organize  and  conduct  a 
credit  department;  how  to  manage  a  modern  commercial 
agency;  how  to  conduct  a  successful  credit  correspond- 
ence; how  to  maintain  a  credit  department  in  the  manu- 
facturing business ;  how  to  insure  a  simple  but  effective 
credit  system  for  a  retail  house;  how  to  manage  credit  and 
collections  for  an  installment  house;  and  specific  credit 
systems  for  retail,  wholesale,  manufacturing  and  install- 
ment businesses.  200  pp.;  solid  value;  absorbing  in- 
terest. Red  vellum $2.00 

Principles  of  the  Mail-Order  Business,  by  Arthur  E.  Swett. 
The  most  complete,  comprehensive  and  practical  volume 
on  the  mail  order  business  ever  published.  Contains  over 
100  pages  of  solid  matter,  illustrated  with  many  cuts. 
Third  edition,  revised  and  enlarged.  Price $1.00 

Theory  of  Business,  Enterprise,  by  Thorstein  Veblein,  assis- 
tant professor  of  Political  Economy  in  the  University  of 
Chicago.  400  pp.,  bound  in  cloth.  Price $2.o3 

Modern  Advertising,  by  Ernest  Elmo  Calkins  and  Ralph  Hoi- 
den,  Illustrated.  This  volume  aims  to  cover  the  field  of 
general  advertising — that  which  is  done  in  newspapers  and 
periodicals,  as  well  as  the  more  modern  forms1  shown  in 
railway  cars  and  stations,  on  tall  buildings,  and  on  the 
landscape.  The  authors  write  out  of  large  experience  and 
close  contact  with  the  business1  as  it  exists  today.  Cloth. 
Price  $1.75 

Successful  Advertising,  How  to  Accomplish  It,  by  J.  Angus 
MacDonald.  Every  business  man,  advertiser,  manager, 
buyer,  ad-writer,  floor-walker,  clerk  and  student  of  ad- 
vertising should  have  this  book.  The  unusual  experience, 
keen  insight,  and  clever  style  possessed  by  this  author 
help  to  make  the  work  valuable  and  ever  readable.  400  pp 
Cloth  $2.00 

Modern  Carpentry  and  Joinery.  Fifth  edition.  50,000  sold  in 
90  days.  Half  leather.  Price  $1.50 

The  Builders'  and  Architects'  Modern  Estimator.  This  vol- 
ume gives  easy  rules  for  estimating  by  cubing,  by  the 

square,  and  by  itemizing.     Price $1.50 

Both  are  Practical  Manuals  by  Fred  T.  Hodgson,  M.  O.,  A. 
A.  These  like  all  of  Mr.  Hodgson's  works,  are  written  in 
simple,  every-day  style,  and  are  the  most  complete  and 
very  latest  works  published,  being  thorough,  practical  and 
reliable. 


Business  Law  For  Business  Men.  A  reference  book,  showing 
the  laws  of  California  for  daily  use  in  business  affairs.  By 
A.  J.  Bledsoe.  Third  edition.  574  pp.  Sheep.  Price,  $3.75 

American  Notary  and  Commissioner  of  Deeds  Manual,  by 

Edw.  M.  John,  of  Chicago  Bar.  Second  edition,  1904,  en- 
larged. Should  be  in  every  office.  Every  one  interested  in 
Conveyancing,  Transferring  Negotiable  Papers,  having 
to  do  with  Notaries  or  Public  Officers;  Forms  of  Ac- 
knowledgments, Affidavits,  Deeds1,  Leases,  Mortgages, 
Wills,  Examining  Titles,  etc.,  should  have  a  copy. 
Price  $2.50 

American  Settler's  Guide 250. 

American  Mining  Code 250. 

Pitfalls  of  Mining  Finance 500. 


UNIVERSITY  OF  CALIFORNT, 


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